
Class 
Book. 



COPYRIGHT DEPOSIT 



THE 

TURNOVER OF FACTORY 

LABOR 



THE 

TURNOVER OF FACTORY 

LABOR 



BY 

SUMNER H. SLICHTER, Ph.D. 

SOMETIME ASSISTANT IN POLITICAL ECONOMY 
IN THE UNIVERSITY OF CHICAGO 

WITH AN INTRODUCTION 

BY 

JOHN R. COMMONS, LL.D. 

PROFESSOR OF ECONOMICS IN THE UNIVERSITY OF WISCONSIN 




D. APPLETON AND COMPANY 

NEW YORK LONDON 

1919 






Copyright, 19 19, by 
D. APPLETON AND COMPANY 



PRINTED IN THE UNITED STATES OF AMERICA 



APR '^525014 



DEDICATED 

TO 

MY FATHER AND MOTHER 



PREFACE 

This work is called the Turnover of Factory Labor to 
distinguish it from studies of the turnover among seasonal 
out-of-door laborers. The turnover among the roving out- 
of-door workers who wander from one seasonal occupation 
to another is a distinct problem, requiring separate study. 
The title to the work, therefore, is only approximate. The 
study is intended to cover the turnover among manual la- 
borers generally, with the exception of the peculiar class of 
out-of-door seasonal laborers. 

The study was commenced in 1913, and most of the data 
had been collected previous to the acute labor situation 
created by the war in 19 16, and especially in 191 7, and re- 
sulting in the unprecedented instability of labor which first 
focused public attention on the problem. Because the situ- 
ation since 1916 has been distinctly abnormal, and because 
it is desired to treat the turnover as a normal rather than as 
an abnormal problem of industry, as a peace, rather than a 
war, problem, the illustrative material has been confined 
largely to years previous to 1916 and the causes of the turn- 
over have been discussed from the standpoint of the situa- 
tion in peace times. 

Although nominally a study of the labor turnover, the 
work is fundamentally a study of methods of handling men. 
The subject of handling men has been strangely neglected 
in works on management. These works deal fully with the 
organization for and methods of handling materials and 
controlling manufacturing processes, such matters as pur- 
chasing, storing materials, planning, routing and scheduling 

vii 



Vlll 



PREFACE 



work, the numerous devices for establishing simple and re- 
liable central control over operations, but among the proc- 
esses to be controlled the handling of labor is not included. 
The idea that a definite and well planned labor policy is as 
necessary as standardized methods of manufacturing, and 
that means are necessary to provide for the formulation and 
execution of such a policy, is lacking. The fundamental 
thesis of this work is the neglected truism that a definite 
plan and specific responsibility for creating and executing 
the plan are as necessary in dealing with labor as in con- 
trolling manufacturing operations. 

The turnover due to seasonal fluctuations in the volume 
of employment has been somewhat cursorily treated. The 
proportion of the turnover due to this cause has been 
analyzed and the principal methods of regularizing employ- 
ment briefly discussed. The subject of seasonal fluctua- 
tions in employment is a complicated one, however, and can 
be more advantageously discussed in connection with studies 
of unemployment. 

This work has been made possible only by the extensive 
and generous cooperation of a large number of persons. I 
am deeply indebted to numerous executives and employment 
managers who have granted generous interviews, opened 
their records for the compilation of statistics, and in many 
instances have themselves compiled statistics. Not only are 
these persons too numerous to mention, but to do so would 
disclose the identity of many establishments which prefer 
to be unknown. I am especially indebted to Professor J. R. 
Commons, in whose seminars the preliminary work was 
done, and who furnishes an introduction; to Mr. C. W. 
Price, Field Secretary of the National Safety Council, who 
thoroughly appreciated the problem long before it came to 
public attention, who had much to do with the study's being 
undertaken, and who greatly facilitated the study by his 
encouragement and by providing numerous contacts with in- 



PREFACE ix 

terested executives; and to Professor H. A. Millis, of the 
University of Chicago, under whose direction the study was 
completed as a doctor's dissertation. Professor Wm. M. 
Leiserson, of the University of Toledo, under whose direc- 
tion data were collected for the United States Commission 
on Industrial Relations, made important suggestions con- 
cerning methods of obtaining data. Professor Field, of the 
University of Chicago, has read Part I, and offered helpful 
suggestions relating particularly to the tables, but I am 
responsible for the methods of statistical presentation. 
Most of all I am indebted to my father and to my wife for 
encouragement and advice. They have read the manuscript 
at various stages and suggested important improvements. 
My wife has read a large part of the proof and prepared 
the index. 

Sumner H. Slichter. 



TABLE OF CONTENTS 
PART I 

GENERAL ANALYSIS OF THE TURNOVER 

CHAPTBB FAQE 

I. What is the Labor Turnover? 3 

II. The Size of the Turnover 16 

III. The Effect of Different Factors upon the Size 

of the Turnover — The Variation of the 
Turnover According to Time and Locality . 29 

IV. The Effect of Different Factors upon the Turn- 

over Rate (Continued). The Variation of 
the Turnover among Different Classes of 

Workers 43 

V. The Numerical Importance of Resignations, 
Lay - offs, Discharges, and Miscellaneous 
Causes of the Turnover 85 

PART II 

THE COST OF THE TURNOVER 

VI. The Cost of the Turnover to the Employer . 107 
VII. The Cost of the Turnover to the Workmen . 142 

PART III 

THE CAUSES OF THE TURNOVER 

VIII. Survey of the Causes of the Turnover . . . 163 
IX. Causes of the Turnover Pertaining to the Job . 185 



xii TABLE OF CONTENTS 

CHAPTER PAGE 

X. Causes of the Turnover Arising from Relations 

between the Men and the Management . . 197 
XI. Causes of the Turnover Pertaining to the Men, 
and the Turnover Due to More Attractive 
Opportunities Elsewhere 206 

PART IV 

METHODS OF REDUCING THE TURNOVER 

XII. Survey of What a Number of Establishments 
Have Accomplished in Reducing the Turn- 
over 223 

XIII. The Fundamental Prerequisites for the Reduc- 

tion of the Turnover — Attractive Wages, 
Steady Work, Agreeable Work, and Short 
Hours 251 

XIV. Hiring 281 

XV. Breaking in the New Worker 326 

XVI. The Handling of Men -347 

XVII. The Supervisor of Labor 408 

Index 443 



INTRODUCTION 

The several years which Mr. Slichter has devoted to the 
study of this important subject has now resulted in the first 
comprehensive treatment of labor turnover. Working as 
a factory employee in some of our largest industrial estab- 
lishments, he himself has lived through the machine 
process which underlies the labor turnover. Then visiting 
many factories and talking with employers and working- 
men; then following this up with schedules and question- 
naires so as to widen his basis of information, all of this 
preparation and collection of material for his work has 
given us an all-round view of the problem. 

In addition to this, his remarkably keen analysis of all 
the contributing factors, whether they be found in the char- 
acter of the worker, the kind of work, the character of the 
boss, or the larger social and economic relations which 
surround the factory, is a model for all investigators and a 
guide for all statistical compilations which may hereafter 
be undertaken in the exposition of this subject. 

More than this, the work is not one of mere compilation 
and academic interest ; it also has the highly important prac- 
tical purpose of guiding the employer in his efforts to 
reduce the labor turnover and of showing him how far he 
may hope to correct it, and what he can gain thereby. 

During the past twenty years the so-called science of 
scientific management has occupied the attention of em- 
ployers and engineers and those interested in labor ques- 
tions. It was felt that if the worker could be carefully 
analyzed in his motions and timed in his processes, and that 

xiii 



xiv INTRODUCTION 

if the method of payment could be so devised as to offer 
him greater incentives and inducements, the efficiency of 
labor would be greatly increased and the cost of labor 
greatly reduced. 

But suddenly it is found that one of the greatest costs of 
labor is not the inefficiency of the individual but the lack 
of goodwill of labor as a whole. Labor turnover, which is 
a group phenomenon and not an individual question, 
suddenly looms up as an intangible overhead cost, and the 
future scientific management must deal not alone with in- 
dividuals as such but with labor as a class and as a whole. 

The employer or superintendent or publicist who fully 
grasps all that is implied in this profound subject of labor 
turnover will be in a position to meet the critical problems 
of the future, and no greater service could have been per- 
formed for American industry than that which is now done 
by Mr. Slichter in his study of the turnover of factory 
labor. 

John R. Commons. 
University of Wisconsin. 



PARTI 
GENERAL ANALYSIS OF THE TURNOVER 



CHAPTER I 

WHAT IS THE LABOR TURNOVER? 

i. What is meant by labor turnover? 

From the employment bureau of a huge machine 
works the investigators in the Pittsburgh Survey found 
that in the year 1906 it was necessary to hire 21,000 
men and women to maintain a force of iOjOOO. 1 The super- 
intendent of a mining property in the Pittsburgh district in- 
sisted that in his experience it was necessary to hire S* 000 
men annually in order to maintain a force of 1,000 men. 
These latter figures were not based on records, but the larg- 
est coal operator in the district thought that 2,000 hirings a 
year for every 1,000 permanent positions was not too high 
for the coal mining industry. 2 

This change in the force due to men leaving is known 
as the turnover of labor. The turnover may be defined as 
all terminations of employment in the force regardless of 
cause. Every worker who leaves the employ of a given 
establishment for whatever reason constitutes a part in the 
turnover of that establishment. The study of the labor 
turnover embraces the study of the causes and effects of 
every termination of employment and the means of pre- 
venting such terminations of employment as are socially 
undesirable. 

Some writers suggest that the turnover should not in- 
clude terminations of employment for which new hirings 

1 Commons, "Wage Earners of Pittsburg," Charities and Com" 
mons, v. XXI, p. 1054. 

2 Ibid., p. 1054. ' 



4 THE TURNOVER OF FACTORY LABOR 

are unnecessary, such as lay-offs on account of lack of 
work. 3 The reason for this view apparently is that since 
the men in these cases are not needed, their leaving repre- 
sents no loss to their employer. 

It is impossible to agree with this view. From the 
standpoint of the employer it is misleading to assume that 
terminations of employment of men who are no longer 
needed and whose leaving, therefore, does not necessitate 
the hiring of new men, represent no loss. Most reductions 
in the working force are more or less temporary, due to 
seasonal fluctuations in the business or to more or less tem- 
porary business depression. The time soon comes when 
business increases and additional men are required. It is 
then necessary to break in new men. The fact that it is 
cheaper to let men go than to pay them to do nothing does 
not alter the fact that a temporary reduction in the force 
represents as real a loss as do resignations or discharges 
of men who must be replaced immediately. The only dif- 
ference is in the immediateness with which the loss is 
felt. In the latter case it is necessary to break in a new 
man at once; in the former case the breaking in of a new 
man is postponed until business picks up. It is important 
for the employer to know how much cost of breaking 
in men he incurs because of fluctuations in the volume of his 
business. 4 

3 Mr. R. A. Feiss suggests that during periods in which there is a 
reduction in the size of the force the number of hirings should be 
taken to represent the turnover. This is equivalent to the number 
of terminations of employment minus the decrease in the number 
employed. Bulletin of the Society to Promote the Science of Man- 
agement, v. I, No. 6, pp. 13-14; Annals" of the American Academy 
of Political and Social Science, v. LXV, May 1916, on "Personnel 
and Employment Problems," p. 51. 

4 It may be suggested that there are numerous temporary jobs, 
such as loading and unloading shipments, for which the employer 
goes to no expense in breaking in men; that these jobs may be 



WHAT IS THE LABOR TURNOVER? 5 

The turnover, moreover, must be considered not only 
from the standpoint of employers, but also from the stand- 
point of the workmen and of the public. To both work- 
men and the public nearly every termination of employment 
involves cost, whether it results in a reduction in the force 
or whether the worker must be replaced. Whatever the 
cause of the termination of employment, the workman 
must usually undergo a period of unemployment, short 
or long, before he finds another job. Perhaps he must 

responsible for numerous changes of personnel, and that to include 
these changes in the turnover figures is to misrepresent the situa- 
tion in the plant as a whole. It is not true that common laborers 
do not go through a breaking in process. A common shoveler, a 
ditch digger, a trucker, accomplishes much less at the beginning 
than after several days on the job. Moreover, where the work 
has been studied, it is possible to increase greatly the output of 
this class of labor by definite training. There is also a great 
difference in men. A gang of carefully selected permanent yard 
laborers is much more valuable than a gang picked up on short 
notice from the material available. The temporary character of 
work which makes impractical the maintenance of picked gangs of 
trained laborers is a real cost because it increases the expense 
of doing the work. It is important that the existence of such 
temporary work be brought to the attention of the management 
by turnover figures. 

Aside from the financial interest of the management in elimi- 
nating temporary jobs, every employer has a duty to other employ- 
ers, to laborers, and to the public in general to reduce to the 
minimum temporary jobs which result in the creation of habitual 
floaters. To guide him in the fulfillment of this obligation, he 
should have statistical evidence of the amount of temporary help 
which he employs. 

The answer to the argument that the inclusion of temporary help 
in the turnover statistics distorts the figures for the force as a 
whole, is that this can be avoided by proper classification. As will 
be pointed out below, the turnover average for a plant being a 
composite average of unlike groups of workers does not possess 
much significance in itself. The real significance of all turnover 
statistics can only be revealed by classification. 



6 THE TURNOVER OF FACTORY LABOR 

try several jobs before he finds one to which he is adapted. 
He must go through a period, short or long, of learning 
the new job. This means loss of wages to the workman, 
of social income to the public. There is also a social cost 
due to the increased accident frequency during the learning 
period on the new job, and often a cost due to demoraliza- 
tion of workmen by the unemployment, discouragement, 
etc. Because the reduction of forces often occurs more or 
less simultaneously in all establishments in a given indus- 
try, workmen who lose their jobs On this account experi- 
ence greater difficulty in obtaining work than those who 
leave in periods of increasing demand for labor. For this 
reason terminations of employment brought about by re- 
ductions in the force are perhaps of greater importance 
from the worker's and public's standpoint than terminations 
of employment due to other causes. 

Not only is there no adequate reason for ignoring ter- 
minations of employment which represent reductions in 
the force, but there are positive reasons why such termina- 
tions should be included in the concept of the turnover. 
The various causes of terminations) of employment are 
not totally independent in their action, but are interdepen- 
dent and cumulative. To a considerable degree voluntary 
quitting among workers is due to unstable habits engen- 
dered by the temporary character of the work itself. It is 
impossible to understand the transient habits of many 
workmen without knowledge of the industrial conditions, 
including temporary jobs, out of which these habits in large 
measure arise. 

Should transfers of employees from one job or depart- 
ment to another, involving change of employment but not 
termination of employment, be included in the turnover? 

Transfers are of four principal kinds: 

(i) Transfers due to unadaptability of workers to their 
work; (2) transfers on account of unsatisfactory relations 



WHAT IS THE LABOR TURNOVER? 7 

of workers with the foreman or other workers ; (3) trans- 
fers on account of promotion; (4) transfers on account 
of scarcity of help in one department and superfluity of 
help in another department. Transfers of the first type 
are substantially equivalent to terminations of employment ; 
transfers of the second type are similar to terminations of 
employment in important respects; transfers of the third 
and fourth types are distinctly different from terminations 
of employment. 

A workman who fails to make good in one department, 
instead of being discharged, is transferred to a vacancy in 
another department. This practically amounts to discharg- 
ing him from his first position and hiring him again for 
the second. The transfer means that the expenditure in- 
curred in attempting to train him for the first job is lost 
as completely as if he had been discharged. In order to 
break him in on the new job a new investment in training 
him is almost as fully necessary as though he were a new 
man. The only difference between the transfer of a 
worker and the hiring of a new one is that the manage- 
ment, knowing the old worker better than a new man, can 
place him more intelligently, that the old workman is some- 
what adjusted to the spirit and atmosphere of the company, 
and that in some cases out of gratitude for being given a 
second chance he makes a special effort to make good. As 
a check upon the employment department, transfers of 
men who fail to make good are equivalent to discharges, 
for nearly all such cases represent an error in hiring. 

Transfers of workers on account of unsatisfactory rela- 
tions with the foreman differ from transfers on account 
of incompetence in that they do not necessarily involve a 
total loss of the amount invested in training the worker 
for his original task. It may be possible to transfer the 
worker to the same or similar work in another department. 
In case the same or similar work is not available, the in- 



S THE TURNOVER OF FACTORY LABOR 

vestment in training the worker for his first job may be al- 
most entirely lost just as is true in transfers of the first 
type. 

Promotions are not as a rule equivalent to ordinary 
terminations of employment because they usually do not 
involve a loss of the investment which the employer has 
made in the workmen. Workmen are usually promoted 
to positions m which their previous experience is not only 
valuable but often necessary. And even though promo- 
tions often render part of the previous investment in the 
employee obsolete, the employer is compensated for this 
loss by obtaining a new asset in the enhanced good will 
and loyalty of the promoted worker. Promotions, there- 
fore, cannot be regarded as closely comparable with ter- 
minations of employment. 

Transfers between departments to adjust the force to 
the volume of work are not comparable to terminations 
of employment, because even though the men's work in 
the new department is totally different from their previous 
work, the investment in breaking them into their previous 
work is not lost, for they are available for it when re- 
quired. 

In spite of the fact that many transfers are substan- 
tially equivalent to terminations of employment, it is not 
customary to include them in turnover figures, and there 
is no reason why they should be included. But as trans- 
fers frequently are a means for retaining in the employ 
of the company men who otherwise would be discharged 
or laid off or who would resign on account of dissatisfac- 
tion (such as workers out of harmony with their fore- 
men), a report on the number of transfers between de- 
partments and of the permanent transfers between jobs 
within the same department should accompany every re- 
port on the turnover. The transfer figures should be 
classified according to the principal reasons for transfer. 



WHAT IS THE LABOR TURNOVER? 9 

Every employment department hires a certain number 
of men who fail to report for work. Should these men 
be included in the turnover? These men represent no 
loss of investment to the employer. They are no possible 
indication,' as are resignations, of unsatisfactory condi- 
tions within the plant. These cases are important only 
in that they delay the filling of the vacancies. There is 
no reason to include them in the turnover. 

2. The expression of the turnover. 

The rate of labor turnover is usually expressed in the 
form of the percentage of the number of terminations of 
employment to the average force on the payroll during 
a given period. The period selected for expressing the 
turnover is usually a year. Thus, if an average force of 
fifty men were employed during a year and within that 
time fifty men quit, the turnover would be 100 percent. 
If, with an average force of fifty, twenty-five men quit 
during the year, the turnover would be 50 percent. 

The question may be asked, why take the average force 
as the base for calculating the turnover? The average 
is simply a fictitious figure, a number probably never actu- 
ally on the payroll. 

The average, though a fictitious figure, is the proper 
base for measuring the turnover because it measures the 
risk of change to which the force is exposed. The risk 
of change varies with two factors — the number of men 
employed and the length of time they are employed. 
One hundred men present a greater risk of change than 
fifty men. One hundred men employed six months pre- 
sent a greater risk of change than one hundred men 
employed three months. An extremely accurate calcula- 
tion of the turnover would be based on the rate of change 
per given number (say 1,000) man-days. An establish- 
ment which in the course of a year employs its force 
600,000 man-days (i.e., the equivalent of one man 600,000 



10 THE TURNOVER OF FACTORY LABOR 

days or 2,000 men 300 days) is exposed to a greater risk 
of change in its force than an establishment which em- 
ploys its force 300,000 man-days. 

The average force takes into account both of these 
elements of risk — the variation in the size of the force 
and the variation in the length of time the various num- 
bers of men are on the payroll. For example, suppose 
that two plants each start the year with forces of fifty 
men. They maintain their forces at fifty men constantly 
for six months. Then plant A increases its force to 
one hundred men, at which figure it maintains its force 
throughout the remainder of the year. Plant B main- 
tains its force at fifty men until the end of the ninth 
month, when it too increases its force to one hundred, 
at which figure the force remains during the year. Ob- 
viously, the exposure to change in the force is greater in 
plant A than in plant B, for in plant A fifty men are 
employed three months longer than in plant B. Figur- 
ing twenty-five working days to the month, plant A worked 
3,750 man-days more than plant B ; 22,500 compared with 
i8,J'5o, or 20 percent more. This difference is reflected in 
the averages of the forces which for plant B is 62.5 men, 
for plant A 75 men, or 20 percent more. 5 

In order to have an adequate picture of the stability of 
the force it is necessary to know the number of men who 
have not changed as well as the number who have left. A 
turnover of 100 percent may be caused by the entire force 
changing in the course of the year or by one-tenth of the 

6 A proposed method of expressing the turnover is to add the 
number of men hired during the year to the number of men quit- 
ting, divide by two, and compare the result with the average force 
employed. The reason for introducing the number of men hired 
into the calculation is not clear. Hirings are distinct from termi- 
nations of employment. They take place for different reasons. 
An average of the hirings and terminations of employment is 
-meaningless. 



WHAT IS THE LABOR TURNOVER? n 

force changing ten times during the year. The turnover 
statement in addition to the total number of changes should 
show also the number of the men on the payroll at the 
beginning of the year who remained continuously in the 
employ of the company throughout the year. Thus an 
establishment employing one hundred men might have one 
hundred changes during the year but find that of the one 
hundred men who were on the payroll at the beginning of 
the year, eighty were still in its employ at the end of the 
year. 

In addition to figures indicating the permanency of men, 
the manager should have figures indicating the permanency 
of jobs. The turnover statement, therefore, in addition to 
the number of permanent men and the number of transient 
men, should show the number of steady jobs and the num- 
ber of temporary jobs. 

3. Classification 1 of the turnover. 

The turnover is ordinarily divided into four parts: (1) 
resignations; (2) lay-offs; (3) discharges; and (4) that 
due to miscellaneous causes. 

These divisions are important because they indicate 
roughly the immediate responsibility for the terminations 
of employment. It is important to know the immediate 
responsibility for terminations of employment because the 
nature of the causes operative in these various cases is 
different. Resignations represent roughly changes due to 
the workman's volition, lay-offs, changes due to lack of 
work, and discharges, changes due to the employer's voli- 
tion. The turnover due to miscellaneous causes includes 
terminations of employment due not to the volition of the 
worker or the employer or to fluctuations in the volume of 
work, but to such causes as death, disability, sickness, and 
superannuation. 

The division of the turnover into resignations, lay-offs, 
and discharges, however, corresponds only roughly to the 



12 THE TURNOVER OF FACTORY LABOR 

distinction between terminations of employment due to the 
workman's volition, to lack of work, and to the employer's 
volition. In piece work shops, a shortage of work causing 
a reduction in earnings is likely to cause numerous resigna- 
tions. These resignations are substantially equivalent to 
lay-offs due to lack of work — lack of work is the funda- 
mental reason why the men quit. Discharges occur also 
for practically the same reasons as resignations. A man 
becomes disgusted with his job, decides he is going to quit 
or that he does not care if he is discharged. He begins to 
loaf or do careless work. When reprimanded by the fore- 
man he answers with some impudent reply and is dis- 
charged. The ultimate reason for the discharge is not that 
the man was unsatisfactory, but that he did not like his 
job and caused himself to be discharged. 

There is great variation in the use of the words "lay-off" 
and "discharge" which renders it necessary in dealing with 
figures from any plant to know the exact meaning attached 
to the terms in that plant. Many pfants have a rule by 
which men who without notice fail to report for work 
after a given period are counted either as laid-off or dis- 
charged. As terminations of employment which in most 
plants would be classified as resignations without notice 
are very numerous, this brings about an important modifi- 
cation in the turnover figures. In a Chicago plant which 
counted men leaving without notice as discharged, out of 
4,206 changes for all causes in the year 1916 there were 
619 due to absence without notifying the foreman (prac- 
tically all cases of men quitting without notice), raising 
the total number of discharges from 467 to 1,086. In 1913, 
out of 2,679 terminations of employment for all causes, 
there were 511 cases of discharge for absence without no- 
tice, increasing the number of discharges from 495 to 1,006. 

The words "lay-off" and "discharge" are sometimes used 
interchangeably. In a Chicago plant all dismissals due to 



WHAT IS THE LABOR TURNOVER? 13 

incompetence, laziness, unreliability, and absenteeism are 
classified as "lay-offs." Only dismissals due to insubor- 
dination, dishonesty, fighting, or other flagrant misconduct 
are classed as "discharges." A New York plant classes 
some terminations as "involuntary resignations," in spite 
of the fact that it classifies other terminations as discharges. 
The cause of the involuntary "resignations" was stated to 
be the "request" of the management. 

Lack of uniformity exists between plants in the handling 
of temporary and permanent lay-offs. Suppose a worker 
is laid off for a week, being told to come back at the end 
of that period. Is this to be counted as a lay-off in the 
turnover figures or not? Since there is no real termina- 
tion of employment here but a mere lapse in the continuity 
of service, this does not appear to be a case of a "turn- 
over," and in most establishments it would not be so 
counted. 6 But suppose the man is told to come back after 
three months? The period intervening is so long that the 
man is compelled to seek other work. The promise of a 
job so far in advance is necessarily highly indefinite. 
These reasons lead most employment men to classify lay- 
offs such as this as permanent lay-offs, properly to be in- 
cluded in the turnover. Where between these two ex- 
tremes should the line between permanent and temporary 
lay-offs, lay-offs which represent a termination of employ- 
ment and those which do not, be drawn? The two shade 
off imperceptibly into each other. The correct principle 
seems to be that if the workman when he leaves has a 
definite offer of a job with the establishment at a definite 
time and if that time be sufficiently near so that he can be 
reasonably expected to wait for it, the lay-off is temporary. 
Otherwise it is permanent and represents a termination of 

6 If the man failed to return at the end of the week, it would 
be considered a termination of employment due to lay-off or, per- 
haps more accurately, due to resignation. 



14 THE TURNOVER OF FACTORY LABOR 

employment. But there are promises of all degrees of 
definiteness, and what is a reasonable time to wait for the 
promised job? 

Mr. R. A. Feiss has suggested 7 that the turnover be 
divided into "avoidable" and "unavoidable" quittings. 
"Unavoidable," he says, "should include discharges, deaths, 
sickness, accidents, marriage, retirement, etc. Avoidable 
should include cases of dissatisfaction and all cases that 
cannot unquestionably be classed as unavoidable." 

The separation of avoidable and unavoidable termina- 
tions of employment is undoubtedly desirable in so far as 
definitely possible, because it indicates to the management 
the minimum to which it can hope to reduce its turnover 
and how far this minimum is from attainment. In prac- 
tice, however, reasons are extremely difficult to classify. 
To illustrate: A workman leaves to take a better position 
in another plant. The other firm may offer more than his 
present employer can afford to pay or more than the em- 
ployer thinks the man is worth. Such a case on its face 
appears to be an unavoidable quitting. But although the 
immediate wages which the present employer can pay the 
workman are below those which he can obtain elsewhere, 
the ultimate prospects of advancement with the present 
employer may be better than in the new place. If under 
these circumstances the man quits, the employer may prop- 
erly lay it to his failure adequately to impress the man with 
the future possibilities of his present work. It is then an 
"avoidable" termination of employment. 

Since in the compilation of turnover statistics such 
minute investigation of the cases is impossible, Mr. Feiss* 
suggested division seems unattainable. Even the causes of 
quitting which he classifies "unavoidable" are in many 

''Annals of the American Academy of Political and Social Science, 
v. LXV, May 1916, on "Personnel and Employment Problems," 

PP. Sh 52. 



WHAT IS THE LABOR TURNOVER? 15 

instances not so. Discharges, for example, in the majority 
of cases probably are avoidable. In most cases they repre- 
sent an error in hiring by the employment department, 
inadequate instruction of the worker in his job, or improper 
methods of handling him. Discharges can be prevented 
by more efficient hiring, by better training of workmen, and 
by proper handling of men. Most accidents are avoidable, 
and many cases of sickness and poor health are due to 
avoidable causes under the control of the employer. 8 At- 
tractive wages and good working conditions influence even 
the readiness with which women leave industry to marry. 
The most desirable classification of the turnover seems to 
be: (1) resignations (exclusive of the specific causes of 
resignations such as sickness, superannuation, classified 
separately); (2) lay-offs; (3) discharges; (4) death; (5) 
accident; (6) sickness; (7) superannuation; and (8) mar- 
riage; with no attempt to distinguish the avoidable and 
unavoidable cases under these separate heads. 

8 111 health and sickness may be caused by unsanitary working 
conditions. A medical department providing advice and first aid, 
reduces the sickness rate materially. Medical examination of all 
applicants for work, preventing the hiring of persons either unfit 
generally or unfit for the specific job, also reduces the turnover due 
to ill health. A visiting nurses promotes health among workers 
by her influence upon home conditions. Finally, a number of firms 
have undertaken campaigns of education in hygiene and right 
living. The classification of sickness and ill health as unavoidable 
causes of the turnover indicates the danger in attempting to classify 
the turnover into avoidable and unavoidable. 



CHAPTER II 

THE SIZE OF THE TURNOVER 

The turnover is the product of many variables such as: 
(i) the general demand for labor; (2) opportunities for 
other employment in the particular locality; (3) living 
conditions in the locality; (4) steadiness of work in the 
establishment; (5) nature of the work and of working 
conditions; (6) character of the men; (7) character of the 
management; (8) season of the year. These numerous 
factors affecting the turnover rate cause it to vary accord- 
ing (1) to time, (2) to industry, (3) to locality, (4) to 
the individual firm, and (5) to the character of the work- 
men. 

On account of this wide variation in the turnover rate 
in different plants and in all plants at different times, it 
is difficult to state a typical rate of turnover. If, however, 
in a year of normal prosperity (that is, a year not of great 
scarcity of labor such as has existed particularly since the 
latter part of 1915 and the early part of 1916, but of good 
demand such as existed in 19 10 and 1913) a large number 
of factories in different industries and in different local- 
ities be taken and the total number of terminations of em- 
ployment be added, the sum will in most cases be found to 
approximate the sum of the average number of men em- 
ployed in the plants. In other words, the average turnover 
for the group will be found to approximate one hundred 
percent. A considerable range exists in the results ob- 
tained, and the above statement that the sum of the ter- 

16 



THE SIZE OF THE TURNOVER ij 

minations in a group of plants tends to equal the sum of 
the average forces of the plants is to be understood as only 
a rough statement. Particularly if the establishments are 
mainly from one industry or from one locality, is the varia- 
tion of the average turnover from one hundred percent 
likely to be large. The larger the group of establishments 
taken, however, and the more diversified according to in- 
dustry and location, the closer is the turnover apt to be 
to the average force employed. Likewise if the turnovers 
of a large group of diversified factories for a year of good 
labor demand be plotted on a curve of distribution, the 
median will be found usually to fall in the neighborhood 
of one hundred percent. 

Mr. M. W. Alexander of the General Electric Company 
collected figures from twelve metal working establishments 
for the year 1912, which show that the number of workers 
employed on January 1, 1912 was 37,274 and at the end 
of the year 43,971, an increase of 6,697, but that the num- 
ber of new employes hired during the period was 42,571, 
this indicating that 35,874 had left. 1 Using as a base the 
number of workmen on the payroll on January 1st plus 
half the increase during the year (a total of 40,622), in 
order to approximate the average number employed, gives 
a turnover of 88.4 percent. 

Mr. W. A. Grieves of the Jeffry Manufacturing Com- 
pany collected figures from twenty metal working establish- 

1 "Waste in the Hiring and Firing of Men." Proceedings of 
National Machine Tool Builders' Association, 1914, p. 91 ; Proceed- 
ings of National Association of Manufacturers, 1915; Annals of 
American Academy, May 1916, v. LXV, p. 136. There is some 
difference in the figures which Mr. Alexander gives in his address 
before the National Machine Tool Builders' Association and those 
which he gives in the address reprinted in the Annals of the 
American Academy. The figures above are from the article in the 
Annals, the more recent publication. 



i8 THE TURNOVER OF FACTORY LABOR 

ments employing 44,000 men which hired during 1913 a 
total of 69,000 men to maintain their forces. 2 

The Tariff Commission appointed by President Taft 
found that a group of woolen mills employing a total of 
from 11,000 to 13,000 wage earners, hired, in 1907, 18,214 
men, in 1908, 12,932, in 1909, 18,255, in 1910, 15,188, the 
size of the force undergoing relatively slight change. 3 

The then Department of Commerce and Labor published 
figures based on the records of a mutual benefit association 
of a steel mill said to be typical of the industry, which 
show that during the six years 1905 to 1910 inclusive the 
force employed by this mill on January 1st averaged 14,701 
but that during this period the mill hired 67,715, or an 
average of 11,286 per year and lost 63,021, an average of 
10,503 men per year. A comparison of the total number 
of terminations (63,021) with the sum of the number of 
men on the payroll on the six January firsts (88,206) gives 
an average rate of turnover of 71.5 percent per year. 4 
These figures, however, do not include the men leaving but 
returning during the year. Many of the terminations of 
employment of men rehired during the year undoubtedly 
represent temporary lay-offs which are not ordinarily in- 
cluded in the turnover. Some of them undoubtedly repre- 
sent indefinite and extended lay-offs such as are usually 
included in the turnover. The total number of men leav- 
ing, but returning during the same year totaled 41,302 for 
the six year period, which added to other terminations gives 
104,323 terminations temporary and permanent for six 
years, an average rate of 118.2 percent, taking the force as 
of January 1st as the base. 

a W. A. Grieves: "The Handling of Men." An address before 
the Detroit Executives' Club. Privately printed. 

8 62nd Congress, 2nd session, House Document No. 342, p. 983. 

4 "Labor Conditions in the Iron and Steel Industry," v. Ill, p. 381, 
62nd Congress, 1st session, Senate Document No. no. 



THE SIZE OF THE TURNOVER 19 

Studies by the Bureau of Labor Statistics in the New 
York cloak, suit, and skirt industry showed that during the 
year ending July 31st, 1913, 1,429 pressers, tailors, cutters, 
and finishers underwent 1,231 changes of employment. 5 

The Bureau of Labor Statistics also found that in 12 
operations 6 in 90 shops in the New York cloak, suit, and 
skirt industry, an average of 1,435 workers were employed 
during the year ending July 31, 1913, but that during this 
period a total of 4,858 workers were employed by the 90 
shops at these operations. 7 We know that every name 
above the number on the payroll at the end of the year 
(with the exception of whatever small proportion of names 
might be omitted from the payroll on account of absence) 
must represent a termination of employment. The num- 
ber of workers employed in the 12 operations in the 90 
plants during the last payroll period was i,534, 8 indicating 
that 3,324 workers had previously left, a turnover rate of 
231.6 percent. This of course does not include whatever 
terminations occurred during the last payroll period. This 

6 "Wages and Regularity of Employment in the Cloak, Suit, and 
Skirt Industry," U. S. Bureau of Labor Statistics, Bulletin No. 147, 
pp. 131-132. 

6 These operations are: cutters, skirt cutters, canvas cutters, 
jacket upper pressers, jacket under pressers, skirt upper pressers, 
skirt under pressers, part pressers, basters, finishers, sample finishers, 
and skirt finishers. Ibid., pp. 39, 40. 

1 This does not mean that 4,858 separate individuals worked at 
these 12 operations in these 90 shops, but that taking the number 
of names which appeared on the payroll of each of the 90 shops 
and adding them together gives a total of 4,858. The same indi- 
vidual may have worked in many shops and the number 4,858 
undoubtedly contains many duplications. This is immaterial from 
our standpoint, since we are simply concerned with the number of 
changes of employment which occurred in these shops. In a study 
of unemployment the elimination of the duplications is of course 
vital. 

8 Calculated from data given in Bulletin No. 147, pp. 21-28. 



20 THE TURNOVER OF FACTORY LABOR 

unusually high turnover is due in part to the marked 
seasonal character of this industry. 

During May and June, 1916, 10 plants in Rochester, New 
York, lost men at the rates, calculated on an annual basis, 
shown in the following table : 9 

Plant Annual rate 

Number of turnover 

1 37% 

2 39% 

3 42% 

4 56% 

5 98% 

6 105% . 

7 141% 

* 8.... 154% 

9 167% 

10 217% 

The weighted average for the entire group was 76 per- 
cent, the unweighted average 106 per cent. 

As the turnover during May and June is generally larger 
than the average monthly rate, the actual annual turnover 
in these plants was probably somewhat less than the rates 
above given. 

The industries represented by the 10 plants included 
cameras and photographic supplies, clothing, optical goods, 
machinery, buttons, shoes, and instruments. 

Miss Van Kleeck found that 163 women employed in the 
New York bookbinding trade underwent approximately 159 
changes of position during a year. 10 

The writer collected figures from 105 factories and 
mines for the United States Commission on Industrial Re- 
lations. The figures in 6j cases are for the year 19 14, a 
year of industrial depression when the turnover was below 

"That is, the actual percentage of terminations to the average 
force during the two months was multiplied by six in order to 
give the annual rate of turnover prevailing during these months. 

10 "Women in the Bookbinding Trade," p. 114. Publications of 
the Russell Sage Foundation. 



THE SIZE OF THE TURNOVER 21 

normal, in 20 cases for the year 1913, when turnovers were 
fairly high, in 8 cases for 1912, when turnovers as a rule 
were less than in 191 3, although greater than in years of de- 
pression such as 1908 or 1914, in 6 cases for twelve months 
extending over parts of 1913 and 1914 (usually ending June 
30, 1914), and in one case each the figures were for 1909 and 
for a twelvemonth period including parts of 1912 and 1913 
or 19 14 and 191 5. In one case the year was not specified. 
On account of the preponderance of data from 1914, the 
figures probably somewhat understate the size of the turn- 
over. The diversity of industries represented by the 105 
establishments probably eliminates great abnormality due 
to the character of the industries of the plants. 11 

On account of the difficulty of obtaining figures of the 
average force calculated by a uniform method, in gathering 
these data the firms were requested to report the maximum 
and minimum 'number of employees on the payroll at any 
time during the year. The average of the maximum and 
minimum force was taken as the base for calculating the 
turnover. Although in a few cases this rough method may 
introduce substantial error, it is believed that when data 
from a large number of plants are combined the error is 
negligible. 

"The industries represented by these 105 establishments include: 
agricultural implements, automobiles and automobile parts, arms 
and ammunition, bicycles and motor cycles, brass fittings, cement, 
cereal foods, chemicals, clothing, coal mining, copper mining and 
refining, cotton goods, department stores, electrical goods and 
machinery, flour, foundries and stove works, furniture, iron and 
steel, machine tools and machinery and engines of all sorts (Corliss 
engines, linotypes, refrigerating machinery, molding machines, silk 
mill machinery), meat packing, metal working of all sorts (boilers, 
heaters, locks and hardware supplies, metal beds, power transmis- 
sion material, pneumatic goods, railroad supplies, saws, valves and 
fittings), rubber goods of all sorts, sanitary ware, sashes, doors 
and woodworking, scales and trucks, shoes, sugar refining, tele- 
phone apparatus, typewriters, watches. 



22 THE TURNOVER OF FACTORY LABOR 

The average of the maximum and minimum forces of 
these 105 plants was 226,038. The total number of ter- 
minations of employment among the entire 105 plants in 
the course of a year was 225,942, a turnover rate of almost 
exactly 100 percent. The size of the turnover in individual 
plants varied from 348 percent to 8 percent. In 11 plants 
it was 200 percent or over, in 41 plants 100 percent or over, 
in 5 plants the rate was below 20 percent, in 16 plants 
below 40 percent. 

Table I classifies the 105 plants according to the size 
of the turnover. 

TABLE I 

SIZE OF THE TURNOVER AMONG 105 ESTABLISHMENTS 



Size of turnover 


Number of 
establish- 
ments with 
turnover of 
respective 
sizes 


Average of 
maximum 

and 

minimum 

forces 


Number of 
terminations 

of 
employment 


200 percent or over 

100 percent to 200 percent . 
80 percent to 100 percent . . 
60 percent to 80 percent . . . 
40 percent to 60 percent ... 
20 percent to 40 percent . . . 
Below 20 percent 


II 
30 

9 
21 
18 
11 

5 


12,788 
69,797 

24,913 
60,021 

38,756 
19,029 

734 


30,014 

105,857 
22,416 
41,814 

19,523 
6,219 

99 





A group of large stores in the east which in 19 13 em- 
ployed an average of 23,562 employees, hired during that 
year 36,025 and lost 27,330 employees. 

Thirteen street railways, the averages of the maximum 
and minimum forces of which totaled 46,533, lost 30,968 
men in the course of a year, a turnover of 66.5 percent. 12 
Four street railway companies reported only the turnover 

12 The year for which figures were supplied differs in the case of 
different street railway companies. In 10 instances the figures 
relate to 1914, in 1 instance to 1913, in 2 instances to the twelve 
months ending June 30th, 1914. 



THE SIZE OF THE TURNOVER 



23 



among motormen and conductors. The average of the 
maximum and minimum forces of trainmen was 11,051, the 
number of terminations of employment 3,362, a turnover 
rate of 30.4 percent. 

Table II shows the rate of change among different classes 
of railway employees: 

TABLE II 

SIZE OF TURNOVER AMONG RAILWAY EMPLOYEES 



Class of labor 


Number of 

roads 
reporting 


Total of 
average 
forces of 
all roads 
reporting (a) 


Total 
terminations 
of employ- 
ment on all 

roads 
reporting 


Turnover 
rate 


Engineers and 
conductors . . . 


10(6) 


9,975 


479 


4-8% 


Firemen and 
brakemen .... 


10(6) 


17,745 


6,334 


35.7% 


Maintenance 
of equipment . 


14(C) 


57,6si 


61,313 


106.2% 


Maintenance 
of way and 
structures .... 


15 id) 


64,083 


128,034 


199.8% 


Station agents, 
station men, 
telegraphers. . 


10(b) 


21,894 


14,053 


64.2% 



(a) The average force of each road was obtained by averaging 
the number of men on 1 2 payrolls — one payroll being taken for each 
month of the year. 

(b) The data for these roads relate in 7 cases to 1914 and in 
3 cases to 1913. 

(c) The data for these roads relate in 8 cases to 19 14, in 2 cases 
to 1 9 13, -and in 4 cases to the year ending June 30, 1914. 

(d) The data for these roads relate in 8 cases to 1 914, in 3 cases 
to the twelve months ending June 30, i9i4,and in 4 cases to 1913. 



24 THE TURNOVER OF FACTORY LABOR 

The following table classifies the railroads according to 
the turnover rate of the respective classes of employees: 



Turnover rate 



300 percent 
and over 

200 up to 

300 percent .... 

125 up to 
200 percent 

100 up to 

125 percent. 

80 up to 
100 percent 

60 up to 

80 percent 

40 up to 

60 percent 

20 up to 

40 percent 

10 up to 

20 percent 

5 up to 

10 percent 

Below 5 percent. 



Engineers 

and 
conductors 



Firemen 
«fej and 
brakemen 



Mainte- 
nance of 
equipment 



Main- 
tenance 

of way 

and 

structure 



THE SIZE OF THE TURNOVER 



25 



The unweighted average of the turnover rates of the 
different classes of employees on these roads was as fol- 
lows: 



Occupation 


Number of 

roads 
reporting 


Unweighted average 

of turnover rates 
on roads reporting 


Engineers and conductors 


IO 
IO 
14 

15 
IO 


40% 

34-6% 
97.4% 

206.5% 

48.0% 


Firemen and brakemen 


Maintenance of equipment 

Maintenance of way and 
structures 


Station agents, station men, 
telegraphers 







The writer has collected figures for the turnover from 
twenty-two establishments in miscellaneous industries. 13 
The total average force employed by these establishments 
was 37,247. The number of terminations of employment 
for the entire group was 44,254, a turnover rate of 118.8 
percent. These figures are for various years from 1906 to 
1916. In the case of a number of plants, figures for more 
than one year were available. In such cases the figures for 
the several years were averaged and the results included in 
the totals given above. 14 On account of the distribution of 
returns from these twenty-two establishments over a num- 



"The industries represented are: Agricultural implements 3, 
automobiles, cable and insulated wire, cameras and photographic 
supplies 2, cotton spinning and weaving, dyeing and bleaching, gaso- 
line engines, laundry, machinery (including engines) 2, pianos, print- 
ing and binding, power plant, shoes, silk spinning, weaving and 
dyeing, storage batteries, street railway shops, transmission appa- 
ratus, valves and valve fittings. 

"The years to which the figures relate and the number of estab- 
lishments for which figures were available in each year are as 
follows: 1906, 1; 1907, 1; 1908, 3; 1909, 2; 1910, 3; 191 1, 5; year 



26 THE TURNOVER OF FACTORY LABOR 

ber of years, it is believed that the average rate for the 
group is fairly normal. 

The unweighted average of the turnover rates in these 
twenty-two establishments is 103.7 percent. The variation 
in the rates among the 22 establishments is shown in the 
table below. Where figures for several years were avail- 
able for one establishment the average rate was used. 

Number of establishments 
Rate of turnover with the specified rate 

of turnover 

Below 20 percent None 

20 percent to 30 percent 4 

30 40 2 



40 " " " 50 " " 

50 " " " 60 " " 

60 " " " 70 " " 

70 " " " 80 " " 

80 " " " 90 " " 

90 " " " 100 " " 

100" " " no " " 3 

no" " " 120 " " 2 

120" " " 130 " " 2 

130" " " 140 " " None 

140 " " " 150 " " 1 

150" " " 175 " " 1 

175" " " 5oo " " None 

500 " " " 600 " " 1 



Total 22 

The turnover is a problem not merely in the United 
States. European factory labor also appears to be highly 
unstable. The Verein fur Sozialpolitik in its studies of the 
composition of working forces and of the industrial careers 
of workmen has published figures for a number of German 

ending June 30, 1912, 1; 1912, 6; 1913, n; year ending June 30, 
1914, 1; 1914, 9; 1915, 16; year ending June 30, 1915, 4; 1916, 3. 
The total number of instances (66) exceeds the number of estab- 
lishments (22) because for a number of establishments figures were 
available for several years. 



THE SIZE OF THE TURNOVER 



27 



factories. In a pottery works at Friedrichsfeld (near 
Mannheim) which employed 1138 men on January 1, 1908, 
576, or 50.6 percent of the force employed at the begin- 
ning of the year, left during the year and 537 men, or 43.4 
percent of the number employed at the beginning of the 
year, were hired during the year. 15 A spinning and weav- 
ing mill at Miinchen-Gladbach, employing an average of 
720 men in 1908, hired in that year 776 new employees, or 
nearly 108 for every 100 employed, and lost through leav- 
ing for all causes 666, or 92 for every 100 on the payroll 
at the beginning of the year. 16 A cotton spinnery at 
Speyer, employing 262 hands at the time of the inquiry, 
hired 94 new hands during the year (1910) and lost 123, 
or 35.0 percent and 46.9 percent respectively of the 
force. 17 

Mr. M. W. Alexander collected from English and Ger- 
man factories the figures shown below. 18 







Employees at 


Employees 


Number 

hired 

during 

the year 






beginning 
of the year 


at end 
of the year 


Factor 


y Number 1 


13,556 


16,150 


9,530 


it 


" 2..... 


10,998 


11,914 


17,059 


« 


" 3 


9,l6S 


12,032 


10,982 


<< 


" 4 


3,158 


3,149 


2,148 


(i 


. " 5 


365 


470 


637 



15 Keck, "Das Beruf sschicksal der Arbeiterschaft in einer badischen 
Steinzeugwarenfabrik," Schriften des Vereins fiir Sozialpolitik, 
v. CXXXV, pt. Ill, p. 177. 

18 Marie Berriays, "Auslese und Anpassung der Arbeiterschaft der 
geschlossenen Grossindustrie," Schriften des Vereins fur Sozial- 
politik, v. CXXXIII, pt I, p. 11 and pp. 38, 39. 

"Marie Bernays, "Untersuchungen iiber die Schwankungen der 
Arbeitsintensitat in der Baumwollspinnerei Speyer," Schriften des 
Vereins fur Sozialpolitik, v. CXXXV, pt. Ill, p. 200 and pp. 206, 
207. 

18 "Waste in the Hiring and Firing of Men," Proceedings of the 
National Machine Tool Builders' Association, 1914, p. 99. 



28 THE TURNOVER OF FACTORY LABOR 

Calculating from these figures the number leaving dur- 
ing the year and calculating the rate of turnover by com- 
paring the number leaving with the average of the number 
of employees at the beginning and end of the year, gives 
the following resulto : 





Average of 








employees at 


Number 


Turnover 




beginning and 


leaving 


rate 




end of year 






Factory Number i 


14,853 


6,936 


46.7% 


" " 2 


H,456 


16,143 


140.8% 


" 3 


IO,599 


8,H5 


76.6% 


4 


3,154 


2,157 


68.4% 


" 5 


418 


532 


127.3% 



CHAPTER III 

THE EFFECT OF DIFFERENT FACTORS UPON THE SIZE OF THE 

TURNOVER — THE VARIATION OF THE TURNOVER 

ACCORDING TO TIME AND LOCALITY 

It was pointed out in the previous chapter that the turn- 
over is affected by many variables, that consequently the 
turnover rate in different plants or in the same plant at 
different times varies widely, and that on this account 
it is extremely difficult to state what is a typical or nor- 
mal rate of turnover. In the previous chapter some idea 
was given of the extent of the variation of the turnover 
between individual plants. Before inquiring what are the 
specific causes for the turnover, it will be advantageous to 
inquire into what are the circumstances with which the 
turnover varies and the extent of the variation with these 
circumstances. This analysis should prove suggestive as 
to the nature of the causes of the turnover. In this chap- 
ter will be considered the variation in the turnover ac- 
cording to time and locality; in the following chapter the 
variation of the turnover according to the class of work- 
men involved. 

i. The effect of variations in the demand for labor 
upon the turnover. 

The tremendous increase in the demand for labor caused 
by the war has resulted in a pronounced increase in the 
size of turnovers and has impressed manufacturers with 
the intimate relation between the stability of labor and the 
state of the labor market. The war situation is extraor- 
dinary, however, only in the degree of the intensity of the 

29 



30 THE TURNOVER OF FACTORY LABOR 






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EFFECT OF FACTORS ON SIZE OF TURNOVER 31 



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32 THE TURNOVER OF FACTORY LABOR 

demand for labor and the consequent effect upon the size 
of the turnover. Always when men are scarce and jobs 
are plentiful, workers are prone to change and are careless 
to conduct themselves so as to avoid discharge. And al- 
ways when men are plentiful and jobs are scarce, the op- 
posite is true. In spite of the fact that lay-offs are espe- 
cially numerous during periods of depression, particularly 
in the early stages of depression, the turnover rate is lower 
in years of depression than in years of prosperity. On 
account of the oscillations in the turnover rate correspond- 
ing to periods of prosperity and depression, it is neces- 
sary, in judging the stability of labor in a given plant, to 
know the period to which the turnover figures relate. 

The variation in the turnover with prosperity and de- 
pression is illustrated by Table III, which shows the varia- 
tion in the turnover in a number of establishments from 
year to year. The table shows that the turnover rate in 
times of prosperity is frequently two or three times the 
rate in times of depression. The years 1908, 1914 and 
191 5 were years of depression and small turnovers. The 
years 1906, 1907, 1910, 1913, and 1916 were years of pros- 
perity and of relatively large turnovers. This is reflected 
in the table. The average turnover rate for six plants for 
which the turnover rates for 191 3 and 19 14 are given in the 
tables was 51.6 percent in 1913 and 33.5 percent in 
1914. 1 The average turnover rate for the plants for 
which the rates in 1908 and 1910 are given in the table 
was 44.5 percent in 1908, and 52.8 percent in 1910. The 
total number of terminations of employment in ten estab- 
lishments for which the number of terminations in 191 3 
and 1 914 is given in the table was 37,732 in 1913 and 
14,977 in 1914. For four establishments for which the 

1 In calculating these averages the Cleveland clothing factory was 
omitted because the rate in that case is calculated on the basis of 
hirings rather than terminations of employment. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 33 

table gives the number of terminations for 1908 and 19 10, 
the terminations in 1910 numbered 23,833 as compared with 
12,758 in 1908. Comparative figures for 191 5 and 1916 are 
available only for five establishments. These five estab- 
lishments, which lost 10,295 men i n I 9 I 5» l° st 35>°95 m 
1916, an increase of 241 percent, showing conclusively the 
effect of the great labor scarcity of 1916. 2 

2. Variation of the turnover with the locality. 

The turnover varies according to the locality chiefly for 
four reasons : 

1. The demand for labor differs in different localities. 
The rapid growth of the automobile industry in Detroit and 
of the rubber industry in Akron, for example, produced a 
great demand for labor in those localities. The ease of 
obtaining new jobs in localities such as these leads work- 
men to change more frequently. The turnover in eight 
Detroit factories, according to data collected by the writer 
for the Commission on Industrial Relations, was 315.7 per- 
cent, 253.6 percent, 249.3 percent, 187.3 percent, 161. 9 
percent, 161. 8 percent, 153.6 percent, and 101.4 percent, 

2 The great difficulty in obtaining new jobs experienced by work- 
men who lose their jobs in the early stages of industrial depres- 
sion is shown by a comparison of the decrease in the number of 
terminations of employment and in the number of men hired, caused 
by the depression. The number of terminations of employment 
decreases much less rapidly than the number of hirings in the first 
stages of depression. In the later stages of depression, when 
recovery is beginning and working forces are gradually being 
increased, the number of hirings rises more rapidly than the 
number of terminations of employment. The following compari- 
sons of the hirings and terminations of employment in several 
plants illustrate these points. Note the relatively greater decrease 
in hirings in 1914, the first year in the respective periods of depres- 
sion, the relatively greater increase in the number of hirings in 
1915, the second year of depression, when recovery was setting in 
(the last several months of 1915 were prosperous). In the case of 
the street railway the decreases both continued during 1915 but at 



34 THE TURNOVER OF FACTORY LABOR 

respectively. A remarkable fact concerning these high 
turnover figures is that with the exception of the plant with 
the turnover of 153.6 percent 3 they are all for the year 
1914, a year of general depression and low turnovers. 
Even in Detroit, which was less affected by the depression 
than most communities, turnovers were lower in 19 14 than 
in 1913. 

The Ford Motor Company (which is not included in the 
eight Detroit plants referred to in the preceding paragraph) 
in 1 91 3, the year preceding the introduction of its profit- 
sharing plan, lost 50,448 men from a force averaging 13,- 
623 men — a turnover of 370 percent. 4 

a lesser rate for the hirings than for terminations of employment. 
In 1916, when prosperity had returned, the increases are substan- 
tially the same. 





Hirings 


Terminations of employment 


Year 


Number 


Percent'of 
change from 
preceding year 


Number 


Percent of 
change from 
preceding year 



1913 


2,429 


I914 


517 


1915 


i,354 


I916 


5,746 



1913 
1914 

1915 

1916 



1913 
1914 

1915 



539 
198 
247 
569 



2,54i 
i,5n 

1,443 



Metal Working Plant 



-78.8 
+ 161. 9 
+324 -4 



2,679 

887 

1,026 

4,206 



Metal Working Plant 



-63.2 

+24.8 

+ 130.3 



Street Railway 



-40 

- 4- 



509 
263 
212 
495 



2,363 
i,7i9 

1,438 



-66.9 

+ 15-7 

-i-309-9 



-48.3 

-19-3 

+ 133-4 



273 
16.3 



3 The figures for this plant are for 1913. 

4 Emmet, "Profit Sharing in the United States," U. S. Bureau of 
Labor Statistics, Bulletin No. 208, p. 115. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 35 

Mr. Boyd Fisher states that the turnover in 57 Detroit 
plants in 19 16 averaged slightly over 252 percent per 
plant. 5 The labor demand was of course particularly acute 
during that year on account of Detroit's large war order 
business. Incidentally the summer of 1916 was excep- 
tionally hot in Detroit and throughout the middle west. The 
terrific heat materially affected the turnover. 

When a community is known to offer abundant opportu- 
nities to obtain work, it quickly draws to it habitual float- 
ers from all parts of the country. The natural tendency 
for workmen to change more frequently when work is eas- 
ily obtained is reenforced, therefore, by the attraction of a 
class of workmen who are drifters by habit and inclina- 
tion. 

The opportunity of the workers of a given establishment 
to obtain work is affected by whether there are other es- 
tablishments in the locality employing the same class of 
help. When an establishment is the only one in the local- 
ity employing a given class of help, the turnover of this 
help is likely to be less than if there are other establish- 
ments in the locality employing the same class of labor. 

The very fact that workers are changing rapidly renders 
it easier for them to change since the rapid vacation of po- 
sitions creates numerous opportunities for employment. 
On the other hand when the rate of change is slow, jobs 
are more difficult to find. In this way great instability of 
labor in a community tends to perpetuate itself because it 
renders changing easy, whereas great stability of labor 
tends to perpetuate itself by rendering new jobs more dif- 
ficult to find. 

2. The turnover is high in new towns and in localities 
which have undergone rapid growth. The new population, 

6 Fisher, "How to Reduce Labor Turnover," Annals of the 
American Academy of Political and Social Science, v. LXXI, May 
1917, on "Stabilizing Industrial Employment," p. 14. 



36 THE TURNOVER OF FACTORY LABOR 

by a selective process, tends to be an adventurous, roving 
type, alert to opportunities to better its condition, or in- 
clined to change for change's sake, for it naturally is this 
class which migrates to new localities. The new popula- 
tion also contains a large proportion of single men who are 
not tied down by family responsibilities. 

The western mining camps are a good example of new 
communities composed of an adventurous, roving popula- 
tion. The turnover rate in six western copper mines or 
smelters according to data collected by the writer for the 
Industrial Relations Commission was 236.5 percent, 234.8 
percent, 219.5 percent, 192.1 percent, 148.8 percent, and 
54.4 percent, respectively. 

3. The attractiveness of the locality as a place of resi- 
dence affects the turnover rate somewhat, although on ac- 
count of the predominant importance of wages and work- 
ing conditions to workmen, the character of the locality is 
usually of secondary importance. Workmen who have been 
used to living in large cities, however, are sometimes un- 
willing to remain for long periods in small towns and out- 
of-the-way places such as mines, power plants, and smelt- 
ers located in the wilderness. On the other hand work- 
men who have worked in small towns not infrequently find 
large cities unattractive. The engineer of a large New 
York power plant tells me he has lost a number of good me- 
chanics brought in from small towns because they or their 
families disliked the large city. 

4. Communities appear to have habits and traditions of 
stability or instability in their working classes. These hab- 
its and traditions are probably founded upon positive con- 
ditions such as the demand for labor in the community, 
seasonal character of the industries, etc. When once es- 
tablished, however, these customs appear to be independent 
forces in themselves and to exert considerable influence 
upon the turnover rate. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 37 

3. Seasonal and short time fluctuations in the turnover. 

It is unsafe to compare the turnover rate in one month 
with the turnover rate in another month and on the basis 
of the comparison to conclude that the rate is rising or 
declining or to attempt to calculate the size of the annual 
turnover from the size of the turnover in a single month or 
even in several months, because the turnover is subject to 
seasonal and numerous short time fluctuations. 

In highly seasonal industries the turnover is greatest dur- 
ing the busy season, when jobs are easy to obtain and op- 
portunities for workers to better their condition are numer- 
ous, and during the transition period from busy to slack 
seasons, when the force is being reduced. Another reason 
why the turnover is high during the busy season is that 
extra workers of less experience and skill than regular 
workers are taken on during this period. They frequently 
prove unsatisfactory and must be discharged. The extra 
workers also often possess exceptionally unstable habits. 

In industries in which the turnover is not affected by 
fluctuations in the demand for labor, the number of resig- 
nations is affected by the season of the year. The resig- 
nation rate tends to be greater in spring and summer than 
in autumn and winter. The reasons for this are: 

1. The psychological effect of the seasons. The severe 
and forbidding weather of the winter appears to quell the 
spirit of adventure in men, but spring produces restlessness 
and the desire for change, and arouses the latent spirit of 
adventure. Habitual floaters who settle down in one place 
during the winter begin their wanderings when spring re- 
turns. 

2. The disagreeableness of searching for a job in the 
inclement winter weather deters men from leaving at that 
time. 

3. Instability among common laborers is stimulated in 



38 THE TURNOVER OF FACTORY LABOR 

the spring and summer by opportunities for higher wages 
in seasonal out-of-door work. 

Even laborers who do not change to out-of-door work 
find that the greater demand and less supply of common 
labor in the spring, summer, and early fall renders it eas- 
ier for them to obtain indoor jobs elsewhere. 

A Chicago metal working plant which lost 109 common 
laborers during 1916 lost 28 of them during the iour months 
ending May 1st, 50 during the four months ending Sep- 
tember 1st and 31 during the four months ending January 
1st, 1 91 7. During January, 191 6, only 2 laborers left and 
during February only 7. Of the 50 laborers who left from 
May 1st to September 1st, 28 worked less than one month; 
but of the 28 leaving between January 1st and May 1st, 
only 4 had worked less than one month. 

4. The heat of the summer causes numerous changes 
among workmen doing hot, heavy work, such as foundry 
work, yard labor, etc. In July, 1916, a month of unusual 
heat throughout the middle west, the forge shop of a large 
Detroit automobile company lost 770 men, a turnover of 
83 percent for the single month, and due in great part to 
the heat. A small brass foundry in a Chicago metal work- 
ing plant which lost 44 men during the year January 22, 
1 91 6, to January 20, 191 7, lost 7 men between January 
22nd and May 6th, 6 men between September 9th and 
January 20th, and 31 men between May 6th and September 
9th. The size of the force, which averaged 9 men, under- 
went no material change during the year. 

5. A few skilled and semi-skilled men leave for out-of- 
door work, not on account of the wages, which are likely to 
be less than they can earn indoors, but because they pre- 
fer out-of-door work. 

The extent of the seasonal fluctuation in the resignation 
rate is shown by the following data. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 39 



The resignation rate per 100 employees in an eastern silk 
mill during 1915 and 1916 was as follows: 



1915 

January 1.52 

February 1 . 46 

March 2.12 

April 2.72 

May 2.22 

June 2 . 53 

July 2 . 64 

August 4.38 

September 4-45 

October 2.75 

November 1.23 

December 2.47 

Average 2 . 59 



1016 

73 
58 
75 
62 

53 
68 

35 
56 
66 

94 
42 
46 

77 



The gradual increase in the demand for labor during 191 5 
probably caused the resignation rate in the summer and 
late spring months to be greater in comparison with the 
winter and early spring months than would otherwise have 
been the case and also caused the rate during the fall months 
to be greater in comparison with the summer months 
than it otherwise would have been. 

The number of resignations per month in an Iowa, agri- 
cultural implement factory was as follows: 



Month 


Number of 
resignations 


Month 


Number of 
resignations 




1915 


1916 


1917 


1916 


1917 


July 


39 
2 
2 
6 
2 
4 


14 
7 
1 

1 

7 
2 


31 
22 


January 

February .... 

March 

April 

May 

June 


7 
12 

15 

20 

38 
34 


11 


August 

September. . . . 

October 

November. . . . 
December 


15 
26 
18 
18 
22 



July and August are slack months in this plant. The 
large number of resignations in July and also in June was 



40 THE TURNOVER OF FACTORY LABOR 

due in part to the slack work which interfered with men's 
earnings. The smaller number of resignations in August 
was probably due to the fact that the reduction in the force 
in July left only the older and more stable men. 

Three hundred and thirty-two resignations which oc- 
curred in a Chicago metal working plant in 191 6 were dis- 
tributed throughout the year as follows : 



Average 
force 



Number 

of 

resignations 



Percent of 
resignations to 
average force 



First quarter 

Jan -March, inc 
Second quarter 

April- June, inc. 
Third quarter 

July-Sept., inc.. 
Fourth quarter 

Oct.-Dec, inc . . 



458 
473 
489 
5o7 



65 

99 

114 

54 



14.2 
20.9 

233 
10.7 



Table IV shows the rate of resignation by 4 week pay 
periods in a large Chicago metal working plant for a series 
of years. 

This plant pays at the end of the year a bonus of 10 
percent to each worker who has remained in the employ of 
the company for the entire year. The pronounced de- 
crease in the rate of resignation in the fall months cannot 
be interpreted, therefore, as due entirely to seasonal causes, 
although seasonal influences undoubtedly contribute to the 
decrease in the rate. The bonus payment also explains the 
high resignation rate in January which in every year is 
decidedly higher than in the preceding December or the 
succeeding February. The workers who have been intend- 
ing to leave, wait until January in order to obtain their 
bonus. The table shows, however, that the resignation rate 
is higher in the spring and summer months than in the 



EFFECT OF FACTORS ON SIZE OF TURNOVER 41 



TABLE IV 

RATE OF RESIGNATION BY 4 WEEK PAY PERIODS IN A 
CHICAGO METAL WORKING PLANT 



Four week 

pay period 

ending in 

month of 


Resignations per 100 employees 


Average 
for all 1908 1909 1910 1911 1912 1913 1914 1915 1916 

years 


Average 

all months .... 

January 

February 

March 


2.0 I.7 2.2 2.3 I.7 2.3 2.2 .9 .9 3.9 
2.4 3.6 2.1 3.I 2.2 2.0 2.8 1.6 .9 3.3 

2.0 1.7 2.4 2.8 2.1 1.8 1.8 1.0 .5 3.5 

2.2 I.4 2.8 3.2 2.5 I.9 2.8 I.5 I.3 2.2 

2.8 1.7 2.9 4.4 2.3 2.6 3.7 1.4 1.4 4.6 
3.0 1.3 4.1 3.5 2.7 2.8 4.1 1.6 1.2 5.5 

2.6_ 1.7 I.9 2.8 2.3 3.3 3.4 1.2 I.O 5.8 
2.6 2.3 I.9 3.4 2.1 3.6 3.3 1.2 .6 4.8 

2.3 1.6 2.7 2.2 I.4 2.8 2.3 1.2 I.O 5.6 

2.0 1.7 2.5 1.8 1.3 2.9 1.6 .4 .9 4.8 
1.6 1.5 2.7 1.4 .8 2.8 1.2 .2 .8 3.4 
1.2 1.3 2.1 .6 .6 2.3 .5 .3 .7 2.1 

•8 1.5 -9 -3 -3 -7 -4 -i -9 i-8(a) 
.9 .7 .4 .9 1.2 .3 .6 .1 2.7 (6) 


April 


May 


June 

July 


August 


September 

October 

November 

December 

December 



(a) Ends in November. (b) Data lacking. 

winter months, in spite of the abnormally high rate in 
January. 6 

Miss Bernays found in Germany a similar tendency of 
terminations to be more frequent in the spring and summer 

"Too great stress cannot be laid upon the necessity in studying 
the seasonal variation in the turnover of taking into account the 
influence upon the seasonal variations of the turnover of the cycles 
of prosperity and depression. In the latter part of 1909, for exam- 
ple, there was a strong recovery from the depression which had 
prevailed throughout 1908 and the early part of 1909, resulting in 
an increased demand for labor and an increase in the turnover. 
This increase in the turnover occurring in the fall of 1909 tended 
to offset the decline in the resignation rate which usually occurs 
with the approach of winter. The strong recovery in the latter 
part of 1915 had the same effect. On the other hand, in the late 
fall of 1913, which had been a prosperous year, a strong depres- 



42 THE TURNOVER OF FACTORY LABOR 

months than in the fall and winter. The percentage of 
all terminations of employment falling in the respective 
seasons in the Gladbach cotton mill for the three years 
studied by Miss Bernays was: 7 

1891 1900 1908 

March, April, May 31 .7% 30-2% 27,1% 

June, July, August 25.9% 26.7% 28.5% 

September, October, November . 18.8% 26. 3 (a) 25.6% 

December, January, February^) 23 . 6% 16 . 7% 18 . 9% 

(a) The large proportion of quittings in the fall of 1900 was prob- 
ably due to a change in management occurring in September,- 1900. 

(b) These three months are not consecutive. They are the De- 
cember, January, and February of the same calendar year in each 
case. 

In the Speyer spinning mill Miss Bernays found the 123 
terminations of employment occurring in 1910 distributed 
as follows : 8 

March," April, May 36.6% 

June, July, August 37-7% 

September, October, November 10. 1% 

December, January, February 15 .6% 

sion set in, resulting in a substantial decrease in turnover rates 
and accentuating the tendency of resignations to decline with the 
approach of winter. 

Another factor which influences the resignation rate is the hiring 
of new men. Resignations are exceptionally high among new hands, 
so that the taking on of a large number of new hands is likely to 
be reflected temporarily in a higher resignation rate. 

'"Auslese und Anpassung der Arbeiterschaft der geschlossenen 
Grossindustrie," op. cit., pp. 35-37. As Miss Bernays' percentage 
calculations are inaccurate, it was necessary for me to recalculate 
them for her absolute figures. This accounts for the differences 
in the percentages given below and those in her book. 

8 "Untersuchungen iiber die Schwankungen der Arbeitsintensitat," 
op. cit., p. 202. 



CHAPTER IV 

THE EFFECT OF DIFFERENT FACTORS UPON THE SIZE OF THE 
TURNOVER (CONTINUED) THE VARIATION OF THE TURN- 
OVER AMONG DIFFERENT CLASSES OF WORKERS 

A turnover of 100 percent may be caused by every posi- 
tion in the establishment being vacated once a year, or 
by one-tenth of the positions being vacated ten times a year, 
or one-fourth four times a year, or one-third three times a 
year. 

It is to be expected that some classes of workmen should 
change more rapidly than others and that therefore the 
turnover is more or less localized among certain classes of 
men. It is important in studying the causes of the turn- 
over to know among what classes of men it is largest and 
to what degree it is concentrated among them. 

The turnover is a highly concentrated phenomenon. 
The high turnover rate in most plants is due to a few men 
changing rapidly while the great majority of the force is 
stable. In highly seasonal industries when a large part of 
the force is laid off at certain seasons of the year, the turn- 
over is of course not so highly localized. The greater the 
seasonal fluctuations of the business, the less is the local- 
ization of the turnover. In general, however, the turnover 
is concentrated among a relatively small proportion of the 
force. 

Four principal points of concentration of the turnover 
are found : 

i. Among new men. 

2. Among certain relatively unattractive jobs. 

43 



44 THE TURNOVER OF FACTORY LABOR 

3. Among common laborers and less skilled men. 

4. Among boys and young men and girls. 

1. Concentration of the turnover among newly hired 
men. 

The evidence available appears to show that not more 
than one-third of the men hired by most factories remain 
in their employ for as long as a year. Two-thirds or more 
of the men hired leave within a year of being hired. 
Analysis of the duration of employment of men on the pay- 
roll of various factories, on the other hand, shows that in 
most establishments two-thirds of the men on the payroll 
have been in the employ of the business for a year or more. 
There is considerable variation between plants in this 
respect. In seasonal industries, the proportion of new 
hands on the payroll is likely to be large, particularly dur- 
ing the rush season. Plants which have recently increased 
their force also have a large proportion of new men. 
Plants which have recently reduced their force laying off 
the new and inexperienced men, have a large proportion of 
old employees. In general, however, roughly two-thirds 
or more of the payroll have been employed a year or more. 

Table V shows the duration of employment of work- 
men leaving certain plants, and Table VI shows the dura- 
tion of service of the men on the payroll of certain plants. 
Table V shows that in twelve establishments in different 
industries, an average of 68.2 percent of all men who left 
had been employed in the establishment for less than a year. 
The average proportion which had been employed two years 
or more in eight establishments for which figures are 
available was 19.0 percent. 

Table VI shows that in 17 establishments for which fig- 
ures were available, an average of 30.0 percent of the force 
had been employed less than a year. The average turnover 
rate in these plants was 79.2 percent. In other words, the 
terminations of employment in these plants averaged nearly 



EFFECT OF FACTORS ON SIZE OF TURNOVER 45 

jour-iifths of the average force, but over two-thirds of the 
men on the payroll had been employed in the plants a year 
or more, indicating clearly that the turnover is concentrated 
among a few positions. 

Striking confirmation of these results is furnished by the 
studies of the New York Factory Investigating Commission 
in the highly seasonal confectionery and paper box indus- 
tries. Ten confectionery establishments with average 
forces totaling 953 had on their payrolls, during the course 
of a year, no less than 3,138 names. In spite of the great 
instability of employment, 530, or 55.6 percent of the total 
average forces, were on the payroll of one firm 49 or more 
weeks during the year. 1 Nine paper box factories, with 
average forces totaling 792, lost 1,571 employees during the 
year, a turnover of 198 percent, but 378, or 47.8 percent of 
the total average forces in these establishments, worked in 
one establishment during the year, 49 weeks or over. 2 

1 Third Report of the Factory Investigating Commission, p. 89. 

*Ibid., pp. 13 1 -132. 

The study of the duration of service of working forces is an 
interesting and important subject in regard to which little has been 
published. The data published appear to corroborate the figures 
in Table V. The Tariff Board, for example, found that in a 
group of woolen mills employing 35,029 men, 27.7 percent of the 
force had been employed less than a year and 72.3 percent a year 
or more. ("Report on Wool and Manufactures of Wool/' 62nd Con- 
gress, 2nd Session, House Document No. 342, pp. 963-964.) Bulle- 
tin 208 of the U. S. Bureau of Labor Statistics on "Profit Sharing 
in the United States," by Mr. Boris Emmet, contains interesting 
figures from a group of plants in which the workmen are probably 
unusually stable. On page 30, a plant is mentioned in which from 
1901 to 1914 inclusive an average of 46.9 percent of the force had 
been employed a year or more and 37.2 percent two years and 
more. On page 36, a plant is mentioned in which 67.6 percent 
of the force had been employed two years and more. On page 45, 
figures are given of a plant in which the proportion employed two 
years or more varied from 49.8 percent to 64.5 percent. A plant 
mentioned on page 49 had from 88.8 percent to 97.2 percent of 



46 THE TURNOVER OF FACTORY LABOR 

A large Chicago metal working plant which, during the 
eleven years 1904 to 1914 inclusive, hired 25,267 men, found 

its manufacturing force employed for six months or more. The 
proportion of the force employed a year or more in a plant men- 
tioned on pages 55 and 56 ranged from 57.6 percent to 88.0 per- 
cent. Fifty-two percent of the employees of a large corporation 
mentioned on pages 136 and 137 had been employed two years or 
more. 

The following data collected by the writer illustrate the wide 
variations that exist in the proportions of the force of various 
durations of employment. These figures were not included in 
Table V because the size of the turnover of these plants was not 
known. 



I Nature 

of 

business 


Loca- 
tion 


Size 

of 

force 


Average 
dura- 
tion of 
service 

of 

force 

in years 


Percentage of force which had been 
employed for the specified periods 


Less 
than 
3 mo. 


Less 
than 
6 mo. 


Less 
than 
iyr. 


2 

•yrs. 
and 
over 


3 

yrs. 
and 
over 


5 
yrs. 
and 
over 


10 

yrs. 
and 
over 


15 
yrs. 
and 
over 


Stoves 


St. ' 
Louis 

Ohio 

Cleve- 
land 


335 
1075 

1039 


5-6 








76.1 
34-0 

10.3 


(a) 
50.5 


(b) 
38.8 


20.7 


(c) 
7-5 


Foundry 
Metal \ 
working J 


32.5 


44.6 


56.9 
65.6 


16. 1 


10.5 


4-3 


1.6 











(a) Pour years and over. (&) Six years and over, (c) Sixteen years and over. 
From the files of the Electric Railway Journal I have collected data concerning 
the duration of employment of the trainmen on several street railway systems. 





Size 

of 

force 


Average 
duration 

of . 
service 
of force 
in years 


Percentage of force which had been 
employed for the specified periods 


Company 


Less 
than 
6 mo. 


Less 
than 
1 yr. 


2 
yrs. 
and 
over 


3 

yrs. 
and 
over 


4 
yrs. 
and 
over 


5 

yrs. 
and 
over 


8 
yrs. 
and 
over 


Bay State 

St. Ry. (a) (b) . . . 
Philadelphia Rapid 


3.205 


7-53 




16.3 
S.42 
34-5 
40.9 
44-5 
11. 2 


83.7 
87.5 


68.3 
77-4 


63.1 


55-2 
47-4 


41.0 


Public Service Rail- 










Puget Sound 

Electric Ry. (<*)... 
Tacoma Ry. & 

Power Co.(d) 

Pacific 


66 

294 

18 




10.6 

32.6 

5-6 


40.9 
44.9 
66.6 


31.8 
30.5 
55-5 




22.7 
19.2 

44.4 



















EFFECT OF FACTORS ON SIZE OF TURNOVER 47 

that 10,961, or 43.4 percent, either resigned or were dis- 
charged within the same calendar year of being hired. 
These figures do not include men laid off who were few, 
nor do they include all the men who left within a year of 
being employed, but only those who left within the same 
calendar year. Many men hired near the end of the calen- 
dar year leave after less than a year's employment, but 
in the next calendar year. 

Another Chicago metal working establishment which 
hired 115 men for certain departments in 1916 found 74, 
or 64.3 percent, of these men gone at the end of 1916. 

The concentration of the turnover among new men is 
shown also by comparing the rate of turnover among newly 
hired men with the rate among old hands This is done 
in Table VII, which shows the proportion of men hired by 
a number of plants who left before the end of the year 
and the proportion of men on the payroll at the beginning 
of the year who left before the end of the year. From 
three-fifths to nearly nine-tenths of the new men hired left 
during the calendar year in which they were hired. The 
rate of change among the new men in most cases is over 
twice the rate among the old men. 

(a) Electric Railway Journal, v. XLV, p. 709. 

(b) Ibid., v. XLIV, p. 123. 

(c) Ibid., v. XL, pp. 819-820. 

(d) Ibid., v. XLIV, pp. 300-301. 

The length of service of trainmen on the Dallas Consolidated 
Electric Street Railway is said to have been increased from 26 
months in November, 1911, to 46 months in April, 1916. Electric 
Railway lournal, v. XLVII, p. 945. 

It is clear that when large increases are not being made in a force 
the proportion in service for five or more years and the average 
length of service oi *W entire force can be increased to and held 
at high figures. 



48 THE TURNOVER OF FACTORY LABOR 



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EFFECT OF FACTORS ON SIZE OF TURNOVER 49 



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50 THE TURNOVER OF FACTORY LABOR 



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EFFECT OF FACTORS ON SIZE OF TURNOVER 51 

These data are confirmed by the experience of a large 
Chicago metal working plant shown in Table VIII. 

TABLE VIII 

COMPARISON OF RATE OF RESIGNATION AMONG NEWLY HIRED AND 

AMONG OLD EMPLOYEES IN A CHICAGO METAL WORKING PLANT, 

1908-1914 



Year 


Number 

of 

men 

hired 


Number of 
men hired 
who resign- 
ed or were 
discharged 
in the 
calendar year 
in which they 
were hired 


Percent of 
men hired 
in respective 
years who 
resigned or 
were dis- 
charged in 
calendar year 
in which they 
were hired 


Size 

of 

force 

on 

Jan. 1st 


Number 
of 
men 
employed 
on 
Jan. 1, 
who resign- 
ed or were 
discharged 
within the 
same year 


Percent 
of men 
employed 
on 
Jan. 1, 
who left 
within 
the year 


1908 
1909 
1910 
1911 
1912 

1913 
1914 


1,512 

2,374 
2,573 
1,568 
2,819 

2,239 
468 


435 
916 

1,083 
498 

i,i43 

1,097 

122 


28.8 
38.6 
42.I 

3i-8 
40.6 
49.0 
26.1 


3,242 
3,98l 
4,8l2 

4,915 
4,684 
5,342 
5,008 


533 
636 
984 
95o 
891 

1,394 
738 


16.4 
16.O 

20.4 

193 
I9.O 
26.I 
14.8 



The average percentage of loss among the newly hired 
men is 36.7 percent; among the men on the payroll at the 
beginning of each year 18.9 percent. 4 

Miss Bernays found that out of 649 wage earners em- 
ployed by a Gladbach cotton mill on January 1, 1908, 233, 
or 35.9 percent, left during the year, but of the 733 new 
employees hired in the course of the year 44.2 percent had 
left by the end of the year. 5 

4 It is obvious that Tables VII and VIII do not show the full 
difference in the stability of old and new men because the old 
employees, all being on the payroll at the beginning of the year, 
have a full year in which to change, whereas the men hired during 
the year are not exposed to risk of change for a full year. 

6 Marie Bernays, "Auslese und Anpassung der Arbeiterschaft der 
geschlossenen Groszindustrie," Schriften des Vereins fur Sozial- 
politik, v. CXXXIII, pt. I, pp. 38, 39. 



52 THE TURNOVER OF FACTORY LABOR 

The average duration of employment of 94 men leaving 
a New York power plant during 191 5 was one year ten 
months, while the average duration of service of the man 
on the payroll on January 1, 191 6, was four years six 
months. The average duration of service of 139 men leav- 
ing a Chicago metal working plant from January 1, 19 16, 
to May 6, 191 6, was nine months, while the average dura- 
tion of employment of 437 men on the payroll on January 
22, 1916, was two years five months. In the preceding six 
months the force had been increased over twenty-five per- 
cent, materially reducing the average duration of service 
per individual. 

The longer the duration of employment of a workman 
in an establishment, the less likely he is to change. The 
decline in the turnover rate as duration of employment 
increases is shown in Table IX, which gives the rate of 
change in the various years of their service of 13,553 men 
hired from 1908 to 1914 inclusive, by the Chicago metal 
working plant referred to on page 51. The rate declines 
consistently as duration of service increases. After the 
fourth year of service it becomes extremely small. 

TABLE IX 

DECLINE IN TURNOVER RATE AS DURATION OF SERVICE 
INCREASES IN A CHICAGO METAL WORKING PLANT 



Year 

of 

employment 


Number remaining 
at beginning of 
respective years 


Number resigning 

or discharged 
during the year 6 


Turnover 
rate 


I 
2 
3 

4 
5 
6 

7 


13,553 
7,066 

3,75i 

1,925 

1,249 

687 

381 


5,304 

2,656 

1,083 

464 

212 

85 
16 


39-i% 
37-6% 
28.9% 
24.1% 
i7-o% 
12.4% 
4-2% 



"The reason why the decreases in the number of men at the 
beginning of each year are greater than the number of men leav- 






EFFECT OF FACTORS ON SIZE OF TURNOVER 53 

That the rate of leaving grows less as duration of service 
increases is indicated by Table X, showing the number of 

ing between the two years is that, in order to get the proper basis 
for calculating the rate of turnover, it was necessary to take not 
the entire number who had had a given number of years' service but 
the number from which the number leaving in the respective years 
was known. For example, 13,553 men having been hired in the 
course of the seven year period and 5,304 having resigned or been 
discharged during the first year, it is known that at the beginning 
of the second year not more than 8,249 remain. It is erroneous, 
however, to compare the number leaving during the second year 
with the number 8,249. Some of these 8,249 are men hired during 
1914. As the number of men leaving subsequent to 1914 is not 
known, we do not know how many of the men hired in 1914 left 
during the second year of their employment. In order to obtain 
a basis for calculating the rate of change during the second year, 
it is necessary, therefore, to subtract such of the men hired in 1914 
as remain at the end of 1914 from the figure 8,249. A similar sub- 
traction is necessary in every case. The number of the men hired 
in 1913 who quit in their third year of employment is not known, 
the number hired in 1912 who quit in their fourth year, the number 
hired in 191 1 who quit in their fifth year and so on, although in 
every instance the number of the men hired in these years who 
were still in the employ of the company at the beginning of the 
third, fourth, fifth, etc., years respectively can be ascertained by 
subtracting the number leaving in previous years from the total 
hired in the given year. 

A second correction is necessary because some of the men hired 
each year were laid off in the same or in subsequent years. The 
total number of lay-offs for each year is known, but the years in 
which the men laid off were hired are not known. As the men laid 
off are usually the least experienced, it is a safe assumption that 
the majority of the men laid off were hired in the same calendar 
year. As it is desired to understate rather than overstate the 
rapidity of the decline in the turnover rate as duration of employ- 
ment increases, it was assumed that 75 percent of the lay-offs each 
year were men hired within the same calendar year — a liberal pro- 
portion — that 20 percent were men hired in the preceding calendar 
year and 5 percent men hired two years previously. The cor- 
rections in the bases for calculating the resignation and discharge 
rates were made in accordance with this assumption. It is be- 



54 THE TURNOVER OF FACTORY LABOR 

employees sharing in the profits of a middle western manu- 
facturer of farm machinery in each year from 1899 to 
1914, who left the employ of the company before December 
6, 191 5. By dividing the number from the group sharing 
in profits each year who had left before December 6, 191 5, 
by the time elapsed up to December 6, 191 5, one obtains the 
average number of the group leaving per year up to De- 
cember 6, 191 5. Comparing this with the total number in 

TABLE X 

DECLINE IN RATE OF CHANGE AS DURATION 
OF SERVICE INCREASES 





Number 


Number 


Average 


Average 




sharing in 


listed in 


number 


percent of 


Year 


profits at end 


column 2 who 


leaving per 


original 




of respective 


had left before 


year up to 


number leaving 




years 


Dec. 6, 1015 


Dec. 6, 1915 


per year 


1899 


34 


15 


.94 


2.8 


1900 


45 


26 


i-7 . 


3 


.8 


1901 


55 


32 


2.3 


4 


2 


1902 


53 


30 


2.3 


4 


3 


1903 


5i 


27 


2.25 


4 


4 


1904 


64 


35 


3-2 


5 





I905 


64 


32 


3-2 


5 





1906 


64 


31 


3-4 


5 


3 


1907 


72 


30 


3-75 


5 


2 


1908 


97 


48 


6.9 


7 


1 


1909 


98 


46 


7-7 


7 


9 


1910 


106 


45 


9.0 


8 


5 


1911 


124 


47 


11.75 


9 


5 


1912 


116 


35 


11. 7 


10 


1 


1913 


117 


29 


14-5 


12 


4 


1914 


113 


12 


12.0 


10 


6 



lieved that this correction tends to understate rather than over- 
state the rapidity of the decline in the turnover rate for the first 
two or three years. Beyond the third year it is immaterial what 
duration of service is assumed for the men laid off, as practically 
all lay-offs are men of less than two or three years of service. 

The number of lay-offs in proportion to the number of hirings 
was small, being 223 in 1908, 31 in 1909, 305 in 1910, 296 in 191 1, 
73 in 1912, 188 in 1913, and 27 in 1914, 






EFFECT OF FACTORS ON SIZE OF TURNOVER 55 

the group gives the average rate of loss of the group per 
year. The longer the period elapsed up to December 6, 
1915, the smaller is the average rate of loss per year, show- 
ing that stability increases as duration of service increases. 
In order to share in profits, employees must have been 
employed not less than two years, so that this table shows 
the rate of loss for employees who had served two years or 
more. 

The proportion of newly hired men who leave after a 
short period of employment naturally is affected by the 
demand for labor and the opportunities for obtaining work. 
In years of depression the proportion of newly hired men 
who leave after short periods of employment is relatively 
small, in years of prosperity large. This is illustrated 
by Table XI showing the proportion of men hired in 
the respective years who left within the same year in the 
Chicago metal working establishment referred to above. 
Note how the rate of leaving is high in years of prosperity 

TABLE XI 

INFLUENCE OF PROSPERITY AND DEPRESSION UPON THE 
DURATION OF SERVICE OF NEWLY HIRED MEN 







Number of men hired 


Percent of men hired 




Number 


in the respective years 


in the respective years 


Year 




resigning or discharged 


who resigned or were 




nirea 


in the same 


discharged in the 
same calendar year 






calendar year 


I904 


2,722 


1,239 


45-5 


I905 


3,125 


1,425 


45-6 


1906 


3,288 


I,6l5 


49.1 


1907 


2,579 


1,388 


53-8 


1908 


1,512 


435 


28.8 


1909 


2,374 


916 


38.6 


I9IO 


2,573 


1,083 


42.1 


I9II 


1,568 


498 


31.8 


1912 


2,819 


i,i43 


40.6 


1913 


2,239 


1,097 


49.0 


1914 


468 


122 


26.1 



56 THE TURNOVER OF FACTORY LABOR 



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EFFECT OF FACTORS ON SIZE OF TURNOVER, 57 

such as 1905, 1907, 1910, 1912, 1913, and low in 1908 and 
1914, years of depression. 

The concentration of the turnover among new men is not 
confined to any particular class of workmen. Regardless 
of the grade of skill of the workmen, it is the new men 
who most frequently leave. Table XII shows the results 
of a study made by the writer of the duration of service 
of the men on the payroll of a Milwaukee plant and of 
the men resigning from the plant during a six months' 
period, classified according to skill. 

These data are confirmed by a study of skilled and semi- 
skilled workers in a Chicago plant. During the year 1916 
this plant hired 24 toolmakers of whom 15, or 62.5 
percent, left before the end of the year, 35 lathe hands of 
whom 22, or 62.8 percent, left before the end of the year, 
19 bench hands of whom 12, or 63.2 percent, left before 
the end of the year, and 14 high grade assemblers of whom 
9, or 64.3 percent, left before the end of the year. 

2. Concentration of the turnover among the less 
skilled. 

Analysis of the turnover rate among different classes 
of workmen shows that in general there is an inverse rela- 
tionship between the degree of skill and the rate of turn- 
over. The higher the degree of skill the lower is likely 
to be the turnover rate. There are exceptions to this rule 
but in most plants it holds true. Among skilled trades- 
men the turnover rarely runs above 50 percent, and indeed 
in most cases is below 30 percent. Among common labor- 
ers, on the other hand, the turnover is rarely below 100 
percent and is usually much higher. 7 

T By a skilled workman in this and the following discussion is 
meant a workman of the traditional tradesman type; that is, one 
who possesses all-round knowledge and who does work which 
requires an apprenticeship training or the equivalent. 

Many of the so called semi-skilled workers do work which re- 



58 THE TURNOVER OF FACTORY LABOR 

Classified statistics would be desirable which would show 
to what degree the greater turnover among the less skilled 
is due to the fact that they are more frequently laid off and 
to what extent due to greater voluntary changing on their 
part. Although exact data on this point are scarce it is 
known that both resignations and lay-offs are proportion- 
ately greater among the unskilled and slightly skilled than 
among the more highly skilled. As among all classes of 
workmen, outside of certain highly seasonal industries, 
resignations rather than lay-offs are the predominating cause 
of the turnover among the less skilled. 

The following are the turnover rates in certain depart- 
ments in a Milwaukee gasoline engine factory in which 
certain classes of workmen predominated: 

191a 1913 

»__, (Except December) 

Tool and pattern departments 

(Skilled) 36.9% 27.7% 

Five departments employing semi- 
skilled machine hands 61 . 9% 72 . 8% 

Five departments employing semi- 
skilled non-machine hands 51 . 9% 73 . 0% 

Yard laborers 

(Common laborers) 179 . 0% 195 . 5% 

These figures are confirmed by the average duration of 
service of the respective classes of workmen, which was : 

Skilled mechanics 4.5 years 

Semi-skilled machine laborers, better grade 4.3 " 

Semi-skilled machine laborers, lower grade 3.7 " 

Semi-skilled non-machine laborers, better grade . 4.0 " 

Semi-skilled non-machine laborers, lower grade. .3.5 " 

Common laborers (except foundry laborers) 2.8 " 

Molders 4.3 " 

Foundry laborers 2.0 " 

quires very great proficiency and many undoubtedly can perform 
the particular operation which they have learned better than a 
skilled man. The difference between them and a skilled man is that 
the skilled worker's knowledge is general, — he is prepared to per- 
form any task in his trade. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 59 

The turnover among the different classes of workmen in 
the machine shop of an eastern street railway was : 



Class'of 
workman 


Number 
employed 


Number leaving 
year ending 
June 1, 1916 


Rate of turnover 


Skilled 

Semi-skilled. . 
Common labor. 


27 
16 

8 


5 
5 
3 


18.5% 
3L2% 
37.5% 



An Iowa manufacturer of agricultural implements found 
that skilled men comprised 35 percent of his force but 
caused only 19.9 percent of the turnover; that semi-skilled 
men comprised 42 percent of the force and caused 39.1 
percent of the turnover; and that unskilled men comprised 
23 percent of the force but caused 41.0 percent of the 
turnover. 

In the year ending September 1, 1917, the skilled, semi- 
skilled, and unskilled workers constituted substantially the 
same proportions of the total force. In this year the skilled 
men caused only 8.5 percent of the turnover, the semi-skilled 
29.6 percent, and the unskilled 61.9 percent. 

If we assume, as without great inaccuracy we may, that 
the respective classes of men constituted the same propor- 
tions of the average force during these years as they did 
of the typical payroll, it is possible to calculate the ap- 



Class of 
labor 


Average number of 

employees (esti- 
mated). Year end- 
ing June 30, 19 16 


Number leaving 

during the 
respective years 


Turnover rate 


Skilled 

Semi-skilled. . 
Unskilled . . . 
Entire Force . 

Skilled 

Semi-skilled. . 
Unskilled .... 
Entire Force . 


8l.2 

97-4 

53-3 
232.0 

Year ending 

August 31, 1917 

7I.O 

85.3 
46.7 

203.O 


53 
104 
109 
266 

16 
56 

_ii7 

189 


65.4% 
106.8% 

204.5% 
1146% 

22.6% 

65-6% 

250.5% 
93-2% 



60 THE TURNOVER OF FACTORY LABOR 

proximate turnover rate for each class. This is done in 
the table on page 59. 

In an eastern shipbuilding plant the rates of turnover 
in 19 1 5 in departments employing workmen of the respec- 
tive grades of skill were : 

Department Turnover rate, 1915 

PRED OMINATINGL Y 
SKILLED MEN 

Machine shop 14% 

Pattern shop 19% 

Electricians 32% 

Outside machinists 38% 

SEMI-SKILLED MEN 

^Riveters and calkers 60% 

Firemen 126% 

COMMON LABORERS 

Outside yard labor 159% 

Storeroom lumpers *97% 

The turnover in the departments of a Chicago metal 
working establishment, according to the class of workmen 
predominating in 191 5 was: 



Class of workman 


Average 
force 


Number 
leaving 


Turnover rate, 
1915 


PREDOMINATINGLY 
SKILLED 

Tool room 

Pattern shop 

Power plant 


19.2 
18. I 

3-5 


(9 

2 

2 


46.8% 
H.I% 

57-2% 


PREDOMINATINGLY 
SEMI-SKILLED 

Machine shop 

Steel shop 

Wood shop 

Foundry 


141 
178 
6.4 

178 


227 
227 

5 
360 


l6l.I% 

127.5% 

78.2% 

202 . 2% 


UNSKILLED 

Yard labor 


105 


161 


825.6% 


MISCELLANEOUS 

Store room 

Shipping 


10.3 
195 

52 
645-5 


"18 

30 
1,041 


92*3% 

57.7% 


Time-keepers and 
clerks 


ENTIRE PLANT 


161.3% 












EFFECT OF FACTORS ON SIZE OF TURNOVER 6i 

With the exception of the store room, which had no turn- 
over, and the clerks and time-keepers, the lowest turnovers 
are found in the skilled departments. Yard laborers had 
by far the highest turnover. The semi-skilled departments 
lay between the skilled and unskilled in the size of their 
turnover rate. 

In a second Chicago metal working plant in which the 
turnover in 1916 was 102.8 percent, the tool room, employ- 
ing an average of 33 men, lost 26, a turnover of 78.8 per- 
cent, and the pattern shop, employing an average of 19.9 
men, lost 11, a turnover rate of 55.3 percent, Of the 26 
men leaving the tool room, however, 12 were laborers, and 
of the 11 leaving the pattern shop 2 were laborers. Six 
departments employing predominantly semi-skilled machine 
hands or bench hands had an average turnover of 92.1 per- 
cent. There was considerable variation between these de- 
partments in the rate, in several instances it being less than 
that in the skilled departments. The rates in these depart- 
ments were : 



Department 



Average force 

employed 

Jan. 22, 1016 to 

Jan. 20, 1917 



Number leaving 
Jan. 22, 1916 

to 
Jan. 20, 1917 



Turnover rate 



Boring mill 

Lathe 

Milling machine 

Drill press 

Punch press 
Bench hands 
Assembly , 

Total 



21 
3& 
25 
21 

17 
19 
21 



166.2 



10 
36 
35 
10 

14 
26 
22 

153 



45 

93 

136 

45 
80 

136 
100 



•9% 
•3% 
•8% 
•9% 
•0% 
•9% 
.2% 



92.1% 



The gang of common laborers in this plant, which aver- 
aged 43 men, lost during the year 109 men, a turnover rate 
of 253.5 percent. 

The tendency of the turnover to be greater among the 



62 THE TURNOVER OF FACTORY LABOR 

less skilled classes is illustrated by a study made by the 
writer in the armature department of this factory. The 
men were divided into three classes, those whose day rate 
was more than 30 cents per hour, those whose rate was from 
25 cents to and including 30 cents per hour, and those whose 
rate was below 25 cents per hour. The turnover rate 
among the lowest paid men was very much greater than 
among the higher paid as the following table shows : 



Wage rate 


Average force 

Jan. 22, 1016, to 

Jan. 20, 19 1 7 


Number leaving 

Jan. 22, 1916, to 

Jan. 20, 1917 


Turnover rate 


Over 30c per hour 

From 25c per hour to 
and including 30c per 
hour 


15.6 

SO 

20.5 


3 

1 
33 


192% 

20.0% 
l6l.O% 


Below 25c per hour. . . . 



Table XIII shows the turnover due to resignations and 
discharges by classes of workers, in a third Chicago metal 
working plant. There is a slight error in these figures 
because it was not known exactly how many of the respec- 
tive classes of workers were employed in each of the years. 
A count of a typical payroll in 191 3, however, showed that 
10 percent of the force consisted of skilled artisans, 24 
percent of common laborers, 16 percent of boys under 21, 
5.1 percent of girls (nearly all under 21), and 44.9 percent 
of miscellaneous semi-skilled shop workmen and office 
workers. 8 No substantial variation has occurred in these 
proportions. These figures, therefore, were applied to the 
total average payrolls of the respective years in order to 
ascertain the approximate average number of each class of 

"The girls employed in this establishment are factory workers, 
not office workers. Most of them are employed as core makers. 
As stated above, the female help consists almost entirely of girls 
and young women. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 63 



X 
pq 





Si 
H 


e2o2 


k©00 to r«> OOO 

OOO ■*•* MOO 
■ to O 00 NO 

O M M 


Number 
resigning 

or 
discharged 


M IO N 00 »0 M 

TftO Olfl ON 
N O N lOM 
N M* tJ 


M <u T3 

M C £ >> 

£5 5.2 


0.0,00 M Tt 
OifliflO OO 

lo^Of) o_ o 

M NIfl 


to 




^NO C- N N Tf 
lO . . . . . 

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N M N CO MM 


Number 
resigning 

or 
discharged 


O t^O M NO 

O OO O O 00 

N M N r» 


60 4) 13 
™ fl S >> 


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t^toO •>* »0 O 

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Oi 
M 


g££ 

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S^fO N00 r*)0 
O • • • • • 

■ N fllfl N 00 
tNCl« MM 


Number 

resigning 

or 

discharged 


NO ^tf*5 »00 

N tOtOO OO 

N N N00 


&5 *d 
2-° a £ 
gii.2 
<2 » 


0000 to rf 00 C) 

t- TfrO tj- rfoo 

tJ-m t- N M r- 

m" NtJ 


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©> 

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H H 


fe^O N t>- O O 
^" • • • ■ • 

■ fOfOH O t- 

O00 Oi"» N *t 


Number 
resigning 

or 
discharged 


TftOt* M M 

TfTl-t-ro 00 O 

tOO t^M Tj-Tt 

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<c ft 


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n ^00 roo 

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O 

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C 

a. 
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•c 


Laborers 

Boys under 21 years 

Girls • _. 

Miscellaneous semi- 
skilled and office 

Entire plant 



64 THE TURNOVER OF FACTORY LABOR 

workers employed in each year. As the number of artisans 
has increased somewhat more rapidly than the force as a 
whole (very substantial additions being made to this class 
in 19 1 5 and 19 16 particularly), the average number actually 
employed is somewhat greater than the number stated in the 
table, and the table therefore overstates the turnover rate 
for artisans in the years 191 5 and 1916. 

In every year the rate among the tradesmen was substan- 
tially below the average rate for the entire plant. The rate 
among the laborers was slightly above the plant average in 
1914 and 191 5, years of depression, but was far above the 
plant average in 1913 and 1916. Table XIII tends to indi- 
cate that the turnover among the less skilled classes of 
workers is much more affected by prosperity and depression 
than the turnover among skilled workers. 

The relative stability of skilled, semi-skilled, and unskilled 
is indicated also by the average duration of service among 
them. 10 In its report on labor conditions in the iron and 
steel industry the then Department of Commerce and Labor 
published the following statistics of the duration of employ- 
ment according to the degree of skill in a steel mill : lx 





Duration of employment 


Class of labor 


Less than 
2 years 


From 2 
to s yrs. 


From s 
to 10 yrs. 


From 10 
to 20 yrs. 


Over 
20 yrs. 


Skilled 


2-5% 
8-3 
19.8 


8.1% 
22.3 

30-7 


20.9% 

26.9 

22.7 


43-8% 
8-3 
8-3 


24.7% 


Semi-skilled 

Common laborers. 


34-2 
18.4 



10 Figures of the average duration of employment of groups of 
workers are subject to distortion by addition of considerable num- 
bers of new men to increase the force among certain classes of 
men. This source of distortion must be guarded against in using 
such figures, just as, in dealing with the relative rates of turnover 
among different classes of workmen, the distortion of the figures 



EFFECT OF FACTORS ON SIZE OF TURNOVER 65 

An examination by the writer of the payroll of a New 
York drop forge plant showed that the average duration of 
employment of skilled men was 7.3 years, of semi-skilled 
men 3.8 years, and of unskilled men 2,.*] years. The figures 
in detail are shown in Table XIV. 

The above examples show clearly the wide difference 
which prevails in the turnover rate among different classes 
of labor. In the Milwaukee gasoline engine factory, the 
turnover among the yard laborers was nearly 5 times the 
turnover in the tool and pattern departments in 191 2 and 
over 7 times the turnover in the tool and pattern depart- 
ments in 1 91 3. The turnover rate among the common 
laborers in the street railway shops was twice the rate 
among skilled tradesmen. In the Iowa implement factory 
the turnover among the unskilled workers in the first year 
was more than 3 times, and in the second year more than 
11 times the rate among the skilled workers. The store 
room lumpers in the shipyard had a turnover rate 14 times 
as large as the machinists', 10 times the pattern makers', 6 
times the electricians', and 5 times the outside machinists' 
rate. The outside labor in the same establishment had a 
turnover 11 times the machinists', 8 times the pattern 
makers', nearly 5 times the electricians', and over 4 times 
the outside machinists' rate. In the first Chicago metal 
working establishment, the yard laborers, with an average 
force of 19.5 men, but 3.0 percent of the total force, 
caused 15.5 percent of the turnover. The turnover rate 
among these men was 75 times the rate among the pattern 
makers and nearly 18 times the rate in the tool room. In 
the second Chicago plant the turnover rate among the com- 
mon laborers was nearly two and a half times the rate for 

by lay-off of large numbers of certain classes of workmen in order 
to reduce the force must be guarded against. 

""Labor Conditions in the Iron and Steel Industry," p. 481; 
62nd Congress, 1st session, Senate Document, No. no. 



66 THE TURNOVER OF FACTORY LABOR 



TABLE XIV 

DURATION OF EMPLOYMENT ACCORDING TO CLASS OF 
LABOR IN A NEW YORK DROP FORGE PLANT 



Class of labor 



Number 

on 
payroll 



Total 
years 
service 



Average 
service in 

years per 
individual 



SKILLED WORKMEN 

Forgers 

Diesinkers 

Toolmakers 

Machinists 

Polishers 

Miscellaneous skilled. 



All skilled men 

SEMI-SKILLED WORKMEN 

Forge helpers 

Die room helpers 

Grinders 

Blacksmith helpers 

Milling machine and lathe 

hands 

Drill press hands 

Punch press operators 

Assemblers 

Miscellaneous semi-skilled . . 



All semi-skilled 

UNSKILLED WORKMEN 

Laborers 

Straighteners 



All unskilled 

MISCELLANEOUS 

Stockroom 

Shipping room 

Drill boys 

Filers (boys) 

Watchmen, janitors, sweep- 
ers, and elevator men 12 . . . 



42 
29 

IS 

8 
16 
40 

150 

33 

12 

10 

6 

25 
4 

19 
9 

10 

128 

40 
11 

Si 

43 

19 

10 

8 



329-33 
210.50 
81.08 
49.83 
167.75 
253-27 

1,093.76 

65.08 
36.77 
52.50 
12.33 

in. 67 
i-33 

136.58 
25-50 
45-68 

487.44 



112. 
24. 



50 
83 



137-33 

56.40 

31.66 

18.33 

5-5 

63 -77 



7-3 

2.0 
3-1 

5-3 
2.1 

4-5 

•3 

7-2 

2.8 

— 
3-8 

2.8 

2-3 

2.7 

1.3 
1.7 

1.8 
•7 

6.4 



12 This group of men is classed separately rather than included 
among the semi-skilled or unskilled because the custom of giving 
positions of this sort to superannuated and incapacitated employees 
deprives the figures of all comparative value. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 67 

the plant as a whole, over 3 times the rate in the tool room, 
and nearly 5 times the rate in the pattern room, in spite of 
the fact that the turnover in the tool room and pattern 
shops was in part (almost half in the tool room) caused by 
common laborers attached to those departments. In the 
third Chicago plant the turnover among the laborers in 
191 6 was 23 times the turnover among the tradesmen. 

The difference in the stability of semi-skilled and skilled 
men is scarcely less striking than the difference between 
the unskilled and the skilled. In the Milwaukee gasoline 
engine works the turnover among the semi-skilled machine 
hands was one and two-thirds as great as in the tool and 
pattern department in 191 2 and nearly two and two-thirds as 
great in 1913. The rate among the semi-skilled non-machine 
hands was 37.6 percent greater than the rate of the tool and 
pattern department in 19 12, and two and two-thirds the tool 
and pattern department's rate in 191 3. The semi-skilled 
workers in the street railway shop changed one and two- 
thirds times as frequently as the skilled, the semi-skilled 
workers in the Iowa implement factory nearly one and two- 
thirds as fast as the skilled workers. In the shipyard the 
riveters changed over 4 times as fast as the machinists, 3 
times as fast as the pattern makers, nearly twice as fast as 
the electricians, and 58 percent faster than the outside ma- 
chinists. In the first Chicago metal working plant the turn- 
over in the machine shop was nearly 15 times the turnover in 
the pattern shop, over 3 times the turnover in the tool room. 
In the third Chicago metal working plant the turnover 
among the semi-skilled workers and office force in 1916 was 
over 3 times the turnover among the tradesmen. 

Not only is the turnover rate much higher among the 
unskilled and semi-skilled workers than among the skilled, 
but the unskilled and semi-skilled workers constitute a much 
larger proportion of the force than the skilled workers. 
The result is that the turnover in by far greater measure is 



68 THE TURNOVER OF FACTORY LABOR 

due to unskilled and semi-skilled workmen and especially to 
unskilled. Twenty percent of the changes in the Iowa im- 
plement factory in the first year and 8.5 percent in the 
second year were caused by skilled men. Common laborers, 
however, caused over 40 percent of the turnover in the first 
year and nearly 62 percent in the second. The first Chicago 
metal working plant, which lost 1,041 men in 1916, lost 
only 13 tradesmen — 1.25 percent of all losses. The foundry 
(from which the losses are for the most part common 
laborers) and the yard laborers alone caused half of the 
changes — 521 out of 1,041. The third Chicago metal work- 
ing plant lost only 54 tradesmen in 1913, or only 2.2 per- 
cent of the total turnover of 2,491. In 1914, 22 tradesmen 
were lost, or 2.6 percent of the total losses for the year, in 
191 5, 60 tradesmen were lost, or 7.6 percent of all losses, 
and in 1916, with total turnover of 4,121, only 41 tradesmen 
were lost, slightly less than one percent of the total turn- 
over. The turnover in this plant consists almost entirely of 
laborers and youths and girls who are engaged in simple 
work and are easy to replace. The following table shows 
the proportion of the turnover caused by these three classes 
of help: 







Number of resig- 


Percentage of 




Total number 


nations and 


resignation and 


Yea? 


of resignations 


discharges among 


discharge caused 




and discharges 


common laborers, 


by common laborers, 






youths and girls 


youths and girls 


1913 


2,491 


1,956 


78.5 


1914 


860 


573 


66.7 


1915 


786 


464 


59-1 


1916 


4,121 


3,5i5 


85.3 



In 1908, 778, or 65.3 percent of a total of 1,191 quittings 
in this plant, were caused by common laborers, youths, and 
girls, in 1909, 998, or 63.0 percent of 1,583 quittings, and in 
the first 28 weeks of 1910, 829, or 51.1 percent of 1,621 



EFFECT OF FACTORS ON SIZE OF TURNOVER 69 

quittings. A count of the force in 1913 showed that 
laborers, youths, and girls constituted only 45.1 percent of 
the total force. 

These results differ decidedly from those obtained by 
Mr. M. W. Alexander who in an investigation of 12 metal 
working establishments found the turnover rate among the 
skilled and the semi-skilled operatives of the higher grade 
to be greater than the turnover among the laborers and the 
semi-skilled operatives of the lower grades. Taking the 
number of employees at the beginning of the year plus 
half the increase during the year as the base for calculating 
the turnover (because more nearly approximating the aver- 
age than the initial number employed) Mr. Alexander's 
figures give the following results : 13 



Class of labor 


Base 


Number 
leaving 


Turnover 
rate 


Skilled tradesmen 


3,868 


4,035 


104.2% 


Semi-skilled men of higher 


grade (whose work requires a 








year or two to acquire an aver- 
age degree of proficiency) . . 
Semi-skilled men of lower grade 


4,880 


5,482 


H2.3% 


(piece workers, requiring 
several months to attain 








average proficiency) 

Laborers 


13,836 

14,230 

4,007 


12,113 

H,952 

2,292 


87.5% 
84.0% 

57-2% 


Clerical force 





On account of the high turnover rate found by Mr. 
Alexander among the skilled and higher grades of semi- 
skilled workmen, these classes were responsible for a larger 

13 Data are published in Annals of American Academy of Politi- 
cal and Social Science, v. LXV, May 1916, on "Personnel and Em- 
ployment Problems," p. 136. Slightly different figures are given 
by Mr. Alexander in his address on the same subject printed in 
Proceedings of the National Machine Tool Builders' Association, 
1914. 



yo THE TURNOVER OF FACTORY LABOR 

share of the turnover than in most plants studied by the 
writer. Nevertheless, the total portion of the turnover 
caused by these classes in the plants studied by Mr. Alex- 
ander was not large. Skilled workers caused only 11.2 
percent of all terminations of employment, and semi-skilled 
men of the higher grades 15.3 percent, compared with 33.7 
percent for semi-skilled men of the lower grade and 33.3 
percent for laborers. The clerical force caused 6.4 percent. 

The proportion of the turnover caused by the respective 
classes of workers is of course of vital importance in con- 
sidering the cost of the turnover. 

The meager data on the situation in Germany indicate 
that the simple inverse relationship between skill and sta- 
bility does not prevail there. The great variation in the 
relative stability of the different classes of help in different 
establishments indicates the complexity of the forces de- 
termining stability. In the Gladbach cotton mill investi- 
gated by Miss Bernays the relative stability of different 
classes of workers in the order from most to least stable 
was: artisans (factory repair force), dressers, yard labor- 
ers, spinners, weavers, and unskilled machine hands. 14 

Miss Bernays interprets the relative stability of the 
different classes in the light of two principal factors — the 
cultural level of the workers and the character of their 
work. The lower the intelligence and standard of living 
of the workers, the greater is their instability. This is 
illustrated by the unskilled machine hands, the "proletariat" 
of the plant who are the most unstable of all, by the yard 

"Marie Bernays, "Auslese und Anpassung der Arbeiterschaft 
der geschlossenen Groszindustrie," Schriften des Vereins fur 
Sozialpolitik, v. CXXXV, pt. Ill, p. 59. 

Miss Bernays applies the term "Mischungsarbeiter" not to the 
mixers proper only, of whom there are very few, but to all un- 
skilled machine hands, such as pickers and carders. See her foot- 
note No. 4, on her p. 15. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 71 

laborers who are relatively unstable, and by the artisans, the 
"aristocracy" of the plant who are the most stable of all. 
Miss Bernays explains the high degree of instability among 
the weavers and spinners, who are also to be reckoned in 
the "aristocracy" of the plant, by the highly monotonous 
character of their work. Frequent change from place to 
place is a means of compensation for the tediousness of 
repetitive work sought by workers possessing a relatively 
highly developed inner life. 15 

In a Speyer spinning mill investigated by Miss Bernays 
the relative stability of the different classes in order from 
most to least stable was : artisans, unskilled machine hands, 
spinners, yard laborers. 16 

In several other establishments a very different relation- 
ship between skill and stability prevailed. Schumann in 
his study of the workers of the Daimler Motor Company 
collected the histories of the workers, obtaining a record 
of the number of positions held and the duration of employ- 
ment in each position. His figures indicate that the skilled 
men are more unstable than the unskilled. The average 
length of service in positions previously held by men re- 
ceiving less than the average wage in the plant was 2 
years, 2^ months, the average duration of service in pre- 
vious positions of men receiving more than the average wage 
in the plant was 1 year, SjA months. 17 The average dura- 
tion of service in previous positions by occupations is 
shown in the table on page 72. 18 

Von Bienkowski found a similar relationship in the sta- 
bility of various classes of help in a cable factory — the least 

15 Ibid., pp. 59-61. 

18 Marie Bernays, "Untersuchungen tiber die Schwankungen der 
Arbeitsintensitat," Schriften des Vereins fur Sozialpolitik, v. 
CXXXV, pt. Ill, p. 204. 

17 Schumann, "Die Arbeiter der Daimler Motoren Gesellschaft," 
Schriften des Vereins fur Sozialpolitik, v. CXXXV, pt. I, p. 130. 

18 Ibid., pp. 44 and 131. 



?2 THE TURNOVER OF FACTORY LABOR 



stable being the skilled, the next least stable the common 
laborers, and the most stable the semi-skilled workers. 19 
Von Biertkowski attributes the great instability of the skilled 
workers to their opportunities to become foremen or inde- 



Class of workmen 



Common laborers 

Machine hands (semi-skilled) . 
Machine molders (semi-skilled) 

Coppersmiths (skilled) 

Turners (skilled) 

Toolmakers (skilled) 

Smiths (skilled) 



Average daily 
wage received 

in Daimler 
works in marks 


Average length 

of service in 

each previous 

position in years 


3-77 
4-56 


2.9 

4.6 




2.1. 


4.94 


2.0 


5.22 


1-7 


4-93 


i-5 


4.91 


15 



pendent masters and to the fact that because of their 
greater intelligence they demand pleasure and satisfaction in 
their work itself and for this reason are willing to give 
up their jobs to seek more congenial work or surround- 
ings. 20 The unskilled laborers are stable because less criti- 
cal and more easily satisfied. Von Biefikowski offers no 
explanation of the maximum stability of the semi-skilled. 

Keck, in a study of a pottery works at Friederichsfeld 
near Mannheim found the most "aristocratic" class — the 
repair force, smiths, machinists, turners, masons, and cer- 
tain hand workers such as joiners and modelers — and the 
"proletariat" of the plant, the common laborers, to be the 
least stable of all. The potters who stood next to the re- 
pair force and hand workers in skill were the most stable, 
the semi-skilled workers occupied an intermediate position. 21 

18 Von Bienkowski, "Untersuchungen iiber Arbeitseignung und 
Leitungsfahigkeit der Arbeiterschaft einer Kabelfabrik," Schriften 
des Vereins fur Sozialpolitik, v. CXXXIV, pt. II, p. 18. 

20 Ibid., p. 20. 

21 Keck, "Das Beruf sschicksal der Arbeiterschaft in einer badischen 
Steinzeugwarenf abrik, ' ' Schriften des Vereins filr Sozialpolitik, 
v. CXXXV, Part III, Table VI, pp. 174-175, and Table XVI, p. 177. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 73 

The German data are too meager and too conflicting to 
warrant generalization concerning the relative stability of 
different classes of labor in Germany. The differences in 
the situations of skilled and unskilled labor in Germany and 
America, however, are so great that we may very well ex- 
pect a difference in their relative stability in the two coun- 
tries. In America there is great variation in the working 
conditions of skilled and unskilled men, but there is less 
variation in their opportunities for advancement. The un- 
skilled man in America has relatively good opportunities to 
get a better job. In Germany there is less difference be- 
tween the working conditions of the skilled and unskilled 
men. On account of the relatively greater abundance of 
skilled workers, the German skilled men are treated little 
better than are common laborers. The wages of skilled 
men are much lower in relation to the wages of the un- 
skilled in Germany than in America. On the other hand 
the opportunities of the unskilled and semi-skilled men to 
obtain better jobs are much less compared with the oppor- 
tunities of the skilled in Germany than in America. 

In America where the main variation is in working con- 
ditions, the skilled men are stable because their working 
conditions are good. Because working conditions of the 
unskilled and semi-skilled men are in many cases unsatis- 
factory and opportunities to better their condition fairly 
abundant, there is considerable changing among these 
classes to take advantage of the chances to improve their 
condition. In Germany, on the other hand, where skilled 
men are affected by unsatisfactory working conditions 
almost as much as the semi-skilled and unskilled, because 
their skill and all around ability renders it easiest for them 
to secure new jobs when dissatisfied, the skilled men may 
be the most unstable of all. The semi-skilled, as some of 
the data suggest, may prove in Germany the most stable of 
all because, on account of the specialized character of semi- 



74 THE TURNOVER OF FACTORY LABOR 

skilled work and their narrow training, they find it especially 
difficult to secure a new job as attractive as their old one. 

3. Localization of the turnover among less desirable 
jobs. 

Every enterprise has few or many jobs which, because 
of the inherent character of the work or the rate of pay 
or other conditions, are unattractive. The work may be 
extremely heavy and fatiguing, it may involve great nerv- 
ous strain, it may be exceptionally monotonous, it may be 
unusually dirty, it may expose the worker to great heat, 
dust, fumes, smoke, or nauseating odors, it may be wet, or 
it may be night work all or in part. In piece work shops 
there are usually certain jobs on which the rate has been 
cut too low, which have been "killed" as the workmen say, 
on which it is impossible to make a fair wage. 

Foundries offer perhaps the most common example of 
work at which it is difficult to hold men. The work is 
hot, heavy, and dirty. Almost innumerable other examples 
can be given. The steel industry, laundries, power plants, 
forge shops, aluminum reduction, the enameled ware indus- 
try, all have numerous jobs in which exposure to great heat 
is inevitable and report difficulty in holding help on that 
account. A rubber shoe plant reports difficulty in holding 
help in its milling department, where the rubber is com- 
pounded, ground, and worked into stock, on account of the 
hard, dirty, hot character of the work. Dye plants report 
that the wet, heat, steam, and dirt of the dye house make it 
difficult to hold men. Copper mines find a large turnover 
among the "trammer s," who do the heavy work of loading 
the loosened material into the cars and who often work 
under conditions of considerable heat. A manufacturer of 
office furniture finds difficulty in holding help in the plating 
room, where nickel plating is done, on account of the heat. 
Sand blasting in foundries where the workman is severely 
exposed to dust has been proverbially difficult work at which 



EFFECT OF FACTORS ON SIZE OF TURNOVER 75 

to hold men. A manufacturer of adding machines has par- 
ticular difficulty in holding men in the cleaning department 
where it is necessary for the men to work with gasoline. 
A manufacturer of furniture has difficulty in holding men 
in the varnishing department because it is difficult for men 
to become used to the odor. A piano manufacturer found 
difficulty in holding varnishers , helpers on account of the 
smell, the dirt, and the heavy character of the work. 
Meat packing offers many examples of dirty, disagreeable 
jobs at which it is hard to hold men. A camera manufac- 
turer reports large losses among female help due to dislike 
of working in the dark room. 

The number of unattractive jobs in a shop may be very 
small but a few such jobs will cause a surprising number of 
changes. The employment manager of a middle western 
shoe factory tells me of four positions all involving the 
same work, for which he hired 48 men within three months. 
The work was cutting heel lifts with a. mallet and die. This 
work is now done in this factory by a machine. The 
work was heavy and men complained of sore arms. More- 
over it was underpaid. Nine dollars a week was about 
the average earnings of the men and some could not make 
more than eight. 

A Chicago metal working plant, with a turnover in 191 6 
of 102.8 percent, lost 44 men from a small brass foundry 
employing an average of 9 men, a turnover of 488.9 per- 
cent. A second Chicago metal working plant, with a turn- 
over of 161 percent in 191 6, had a turnover in its foundry 
of 202.2 percent. 

A manufacturer of transmission machinery, who had a 
turnover for the entire plant of 56 percent in 1914, had a 
turnover of over 400 percent in his foundry. 

A Cleveland foundry found that out of 2,27$ men leaving, 
1,506, or 66.3 percent, had worked less than 30 days and 
2,050, or 00.2 percent, less than four months. Another 



76 THE TURNOVER OF FACTORY LABOR 

western plant, which has made a remarkable record in hold- 
ing down its turnover and which, for the four years from 
1913 to 1916 inclusive, had an average turnover rate of 
40.5 percent, reports great difficulty in holding men in the 
foundry. "While we have done all that is humanly possible 
to make conditions less severe/' writes the employment 
manager, "the foundry will, by nature of the work neces- 
sary to be performed, prove less inviting than the shop." 
A western farm implement manufacturer with a turnover 
°f 93-7 percent for the entire plant had a turnover 
of 1 1 5.7 percent in the foundry. 

Hot jobs cause numerous changes. A Detroit factory 
was mentioned in the preceding chapter which had a turn- 
over of 83 percent in its forge shop in the hot month of 
July, 1 91 6. The employment manager of another Detroit 
plant states that two or three out of every ten laborers 
hired for their heat treating room, where men work among 
furnaces heated from 600 to 2,000 degrees, quit within 
several hours, two or three more within several days, and 
that at the end of the month not more than two or three out 
of ten hired will be left. 

Yard work on account of its heavy character and because 
of the low wages causes large turnovers. A New York 
piano manufacturer who employed a yard force of 13 men 
lost 12 in the single month of June, 1916. Of the 12 who 
left, 1 had worked 1 day, 6 had worked 1 week, 2 two weeks, 
1 two months, 1 seven months, and I two years and six 
months. The work was heavy, handling lumber. The 
wages were only $10 per week. 

4. Concentration of the turnover among boys, young 
men, and girls. 

The turnover rate in general is decidedly higher among 
boys, young men, and girls than among workmen in general. 
This is illustrated by the experience of the Chicago metal 
working plant shown in Table XIIL The percentage of 



EFFECT OF FACTORS ON SIZE OF TURNOVER yj 

resignations and discharges to the average force for the 
entire plant and for the youths and girls from 1913 to 1916 
inclusive was as follows : 22 

Entire 
Year plant Youths Girls 

1913 47-9% 93-2% 5i-7% 

1914 18.0 33.2 25.8 

1915 16.4 21.7 37.2 

1916 68.8 104.5 84.3 

At the 191 5 convention of the National Association of 
Corporation Schools, Mr. L. Atherton, who was then in 
charge of the office and messenger boys of Swift and 
Company, stated that during the nine years preceding his 
connection with the company it had employed 1,350 boys, 
whose average duration of service was 3.6 months. 23 

The rapid changing among children is most strikingly 
shown by data collected by the Bureau of Vocational Guid- 
ance of the Chicago Public Schools. These children were 
mostly between 14 and 16 years of age. The bureau found 
that 1,082 boys none of whom had been at work for over a 
year, and more than half of whom had been at work less 
than 6 months, had made 1,24.0 changes of employer since 
entering industrial employment. Three hundred and fifteen 
of these boys had been in industrial employment less than 
three months but in that time had made 199 changes. Three 
hundred and twelve who had been in industrial employment 

22 The exact number of youths and girls on the payroll in the 
respective years was not known. A count made in 1913 showed 
that 16 percent of the force in this plant were boys and young 
men under 21 years of age and 5.1 percent of the force girls nearly 
all under 21. The average number of youths and girls employed for 
each year was estimated by taking 16 percent and 5.1 percent of 
the average force. As the proportion of youths and girls remained 
substantially constant these estimates are sufficiently accurate. 

23 Proceedings of the National Association of Corporation Schools, 
191 5, PP- 438-439. 



78 THE TURNOVER OF FACTORY LABOR 

from three to six months had made 364 changes, 274 who 
had been in industrial employment from six to nine months 
had made 371 changes, and 181 who had been at work 
from nine months to one year had made 298 changes. The 
average number of jobs held per boy by those who had 
been at work less than three months was 1J63 jobs, by those 
who had been at work from three to six months 2.17 jobs, 
by those who had been at work from six to nine months 
2.38 jobs, by those who had been at work from nine months 
to one year 2.65 jobs. 24 

The Bureau found that 1,070 girls, none of whom had 
been in industrial employment for more than a year, had 
made 1,078 changes. Three hundred sixty-nine of these 
girls had been at work for less than three months but in 
that time had made 205 changes, 278 had been at work 
from three months to six months and had made 275 changes, 
260 had been at work from six to nine months and had made 
324 changes, and 163 had been at work from nine months 
to a year and had made 274 changes. 25 The average num- 
ber of jobs held per girl by those who had been at work 
less than three months was 1.55, by those who had been at 
work from three to six months 1.99, by those who had been 
at work from six to nine months 2.25, by those who had 
been at work from nine months to a year 2.68. 

Table XV shows the time at work and the number of jobs 
held by these groups of boys and girls. 

The instability of boys and girls is further indicated by 
the time spent at their first position upon entering industry. 
The Bureau of Vocational Guidance of the Chicago Public 
Schools collected data in regard to this point from 3,679 
boys and girls. Of these 3,679 children, 967, or 26.3 per- 

24 Based on data given in Report of Bureau of Vocational Guid- 
ance, Chicago Public Schools, 1916, p. 33. 

25 Ibid., p. 33. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 79 









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80 THE TURNOVER OF FACTORY LABOR 

cent, left their first job within one month, 1,388, or 37.7 
percent, within two months, 1,684, or 45.8 percent, within 
three months. More than half (52.0 percent) of the chil- 
dren left their first position within four months of being 
employed. Two thousand and sixty, or 61.5 percent, left 
within six months of being employed and 2,720 or nearly 
three-fourths (74.1 percent) left within a year of being 
employed. 27 Table XVI gives the details. 



TABLE XVI 

TIME SPENT AT FIRST POSITIONJBY 3,679 CHILDREN 28 





All Children 


Duration of 

employment 

at first 

,; position 


Number 
leaving 

first 
position 


Percent of 

number 

leaving to 

total 


Number 
leaving 
(cumula- 
tive) 


Percent of 

number 
leaving to 
all (cumu- 
lative) 


Number 

still in 

first 

position 


All months 

1 month 

2 months 

3 months 

4 months 

5 months ....... 

6 months 

7 months 

8 months 

9 months 

10 months 

1 1 months ........ 

12 months 

12-15 months. . . . 
15-18 months. . . . 
18-21 months. . . . 
21-24 months. . . . 
24 months and 

over 


2,920 
967 
421 
296 
229 
129 
220 
8l 

91 
6l 

35 
24 
166 
26 
27 
64 
8 

75 


79-4 

26.3 

n. 4 

8.1 

6.2 

3-5 
6.0 
2.2 
2-5 
i-7 
1.0 

•7 
4-5 

•7 
1.7 

2.7 
2.2 

2.0 


2,920 

967 

1,388 

1,684 

1,913 
2,042 
2,262 

2,343 
2,434 
2,495 
2,530 
2,554 
2,720 
2,746 
2,773 
2,837 
2,845 

2,920 


79-4 
26.3 

37-7 
45-8 
52.0 

55-5 
61.5 
63 -7 
66.2 
67.9 
68.9 
69.6 
74.1 
74.8 

75-5 
77.2 

77-4 
79-4 


759 
141 

63 

55 
47 
56 
56 
35 
4i 
30 
19 
11 

57 
17 
35 
38 
5 

43 





27 Based on data in Report of Bureau of Vocational Guidance, 
Chicago Public Schools, 1916, p. 36. 

28 Ibid. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 81 



The rate of change among the children studied by the 
Bureau is exceptionally high because most of the children 
were below 16 years of age and because the Bureau's study 
deals with children during their first several years in indus- 
try. Young children and those just entering industry are 
peculiarly unstable because they find the work harder than 
older children, because the routine and monotony of work 
weigh on them more than on older and more experienced 
children, because several changes are often necessary before 
a child finds work which he likes, because younger and less 
experienced children are more likely to prove unsatisfactory 
to their employer and are discharged, and because they are 
more likely than older children to be laid off since there 
are fewer things which they can do. 

Data collected by the Chicago Bureau of Vocational 
Guidance indicate that the instability of children decreases 
as their industrial experience increases. The Bureau gives 

TABLE XVII 

RATE OF CHANGE OF EMPLOYER AMONG 1,834 BOYS 29 



Duration of 




Estimated 


Changes made 


Rate of 


employment 


Number 


total years 


since enter- 


change 


in industry 




in industry 


ing industry 


per year 


Less than 3 months 


315 


39 


199 


5-1 


3 to 6 months 


312 


117 


364 


3-1 


6 to 9 months 


274 


171 


379 


2.2 


9 to 1 2 months .... 


l8l 


158 


298 


1.9 


12 to 15 months . . . 


211 


237 


361 


i-5 


15 to 18 months. . . 


131 


180 


281 


1.6 


18 to 21 months. . . 


no 


179 


284 


1.6 


2 1 to 24 months . . . 


73 


135 


232 


i-7 


2 to 3 years 


181 


453 


437 


1.0 


3 to 4 years 


3i 


109 


107 


1.0 


4 to 5 years 


8 


36 


26 


•7 


5 to 6 years 


7 


38.5 


21 


•5 



29 Based on data in Tables 12 and 13 of Report of Bureau of 
Vocational Guidance, Chicago Public Schools, 1916, p. 33. 



82 THE TURNOVER OF FACTORY LABOR 

figures showing the number of children engaged in industry 
for less than three months, from three to six months, and 
so on by quarterly periods up to two years and by annual 
periods above two years, and the number of jobs held by the 
children in each group. From these figures it is possible to 
calculate the average rate of change per annum. It was 
assumed that the average time since entering industry of 
the children who had been in industry less than three months 
was a month and a half, of the children who had been in 
industry from three to six months, four months and a half, 
etc. The total number of years in industry for each group 
estimated by this method, divided into the number of 
changes of employer gives the rate of change of employer 
per year. Tables XVII and XVIII give the results. 

That stability increases as industrial experience increases 
is indicated also by data relating to Massachusetts Trade 

TABLE XVIII 

RATE OF CHANGE OF EMPLOYER AMONG 1,6 1 6 GIRLS 30 



Duration of 
employment 

in lndustry- 


Number 


Estimated 
total years 
in industry 


Changes'made 
since enter- 
ing industry 


Rate of 
change 
per year 


LeSS than 3 months 

3 to 6 months 

6 to 9 months .... 
9 to 12 months . . . 
12 to 15 months . . . 
15 to 18 months . . 
18 to 21 months . . 
21 to 24 months. . . 

2 to 3 years 

3 to 4 years 

4 to 5 years 

5 to 6 years 


369 

278 

260 

163 

148 

96 

92 

40 

131 

29 

9 

1 


46 
104 
163 

143 
166 
132 
121 

75 
327 
102 

41 
5-5 


205 
275 
324 
274 
264 
183 

154 
92 

293 
76 

34 

1 


4-5 
2.6 
2.0 
1.9 

1.6 

1.4 

1.3 

1.2 

•9 

•7 
.8 
.2 



30 Based on data in Tables 12 and 13 of Report of Bureau of 
Vocational Guidance, Chicago Public Schools, 1916, p. 33. 



EFFECT OF FACTORS ON SIZE OF TURNOVER 83 

School girls, published by the Bureau of Labor Statistics. 31 
The following figures are calculated from Table 52 of the 
Bureau's study, showing the changes of employer made by 
72% girls entering the sewing trades. In calculating the 
total years' service of these girls in the sewing trades, it was 
assumed that the average length of service of the girls 
engaged in the trades for less than one year was six months, 
of these engaged in the trades one to two years was one and 
a half years, etc. The average duration of service of those 
engaged in the trades for eight years or more was arbitrarily 
assumed to be 9 years — a conservative estimate. The aver- 
age number of changes of employer per year of service 
calculated in this manner consistently declines as duration 
of experience in the trades increases. 



TABLE XIX 

RATE OF CHANGE OF EMPLOYER OF 727 BOSTON TRADE SCHOOL 
GIRLS ACCORDING TO LENGTH OF EMPLOYMENT IN SEWING TRADES 



Duration of 
experience in 

the 
sewing trades 


Number 


Estimated 

total years 

in the 

sewing trades 


Total changes 
of employer 

since 
entering the 

sewing trades 


Average 

number of 

changes of 

employer per 

year in the 

sewing trades 


Less than i year. . . 

1 to 2 years 

2 to 3 years 

3 to 4 years 

4 to 5 years 

5 to 6 years 

6 to 7 years 

7 to 8 years 

8 years and over . . 


107 
I20 

99 
100 

94 
78 
48 
32 
44 

. . M. ... 


53-5 
180.0 

247 -5 
35oo 
423.0 
429.0 
312.0 
240.0 
396.0 


91 
142 

152 
200 
190 
167 
119 
76 

99 


I.70 

•79 
.61 

•57 
•45 
•39 
.38 
.32 
•25 



It is not invariably true, however, that youths and girls 
show a higher rate of turnover than adults. The subjoined 
figures from an eastern silk mill showing the average rate 

31 "Industrial Experience of Trade School Girls in Massachu- 
setts," U. S. Bureau of Labor Statistics, Bulletin No. 215, p. 89. 



84 THE TURNOVER OF FACTORY LABOR 

of turnover according to age for the six years 1908 to 191 3 
inclusive show the rate is highest between the ages 21 to 24 
inclusive. The reason for this probably is that the mill 
was located in a small town where it was practically the 
only industry. For the young people to change jobs meant 
in most cases that they must leave home, which they were 
less able and inclined to do than those slightly older. 





Average 


Average 


Average 


Age 


number of 


number leaving 


annual turnover 




employees 


annually 


rate 




1908- 19 13 32 


1908-1913 inc. 


1908-1913 inc. 


15 up to 21 years 


385 


121 


3L4% 


21 up to 25 years 


321 


I08 


33-7% 


25 up to 30 years 


350 


98 


28.0% 


30 up to 35 years 


251 


53 


21.1% 


35 up to 40 years 


2l8 


43 


19-7% 



5. The relative stability of men and women. 

I have been unable to obtain satisfactory data concerning 
the relative stability of men and women. Statistics ob- 
tained from a number of plants are without significance be- 
cause the men and women are engaged in entirely different 
work. 

82 The number of employees within each age class on January 1st 
of each year was averaged in order to obtain the figures in this 
column. 



CHAPTER V 

THE NUMERICAL IMPORTANCE OF RESIGNATIONS, LAY-OFFS, 

DISCHARGES, AND MISCELLANEOUS CAUSES 

OF THE TURNOVER 

i. The relative frequency of resignations and lay-offs. 

Resignations constitute the most frequent source of ter- 
minations of employment, and lay-offs the second most fre- 
quent source. 1 The belief, if there is one, that the instability 
of labor is primarily due to fluctuations in the volume of 
work is not true of industry as a whole. 2 

1 The figures given in this section concerning the number of resig- 
nations and their frequency compared with lay-offs, include resig- 
nations which do not occur at the volition of the worker, such as 
sickness, disability, being needed at home, etc., which properly 
should be separated from resignations due to the worker's volition 
and classified as miscellaneous causes of the turnover. As these 
causes of turnover were not separated by the plants studied, they 
are inevitably included in the figures given for resignations. The 
number of terminations of employment due to these causes is not 
sufficient to change the conclusions concerning the relative impor- 
tance of resignations due to the worker's volition and lay-offs due 
to lack of work as causes of the turnover. 

2 It cannot be denied that unsteady work has important indirect 
effects upon the turnover in addition to its direct effects, by creat- 
ing the habit of floating. It is also true, as was pointed out in 
Chapter I, that the direct effect of unsteady work is not adequately 
measured by lay-offs, since failure to obtain enough work to make 
a fair day's wage causes piece workers to leave of their own voli- 
tion. The difference between the number of resignations and the 
number of lay-offs in non-seasonal industries, however, is so great 
that it seems clear that resignations are directly responsible for a 
far larger share of the turnover than lay-offs. 

- 85 



86 THE TURNOVER OF FACTORY LABOR 



The relative importance of resignations and lay-offs varies 
greatly from industry to industry. In highly seasonal in- 
dustries the proportion of lay-offs is large. This is illus- 
trated by the following figures, indicating the proportion 
of the turnover attributable to the various causes in six 
plants in seasonal industries : 3 



Resignations 



Lay-offs 



Discharges 



Sugar beet factory 
Sugar beet factory 
Sugar beet factory 
Sugar beet factory 

Ship Yard 

Ship Yard , 



13% 
14% 
24% 
10% 
9% 
20% 



83% 
74% 
59% 
87% 
89% 
75% 



4% 
n% 
17% 
3% 
2% 
5% 



In general, however, resignations are more numerous than 
lay-offs. Data collected by the writer for the Commission 
on Industrial Relations from 78 factories, mines, and stores 
with a total turnover of 142,069, show that resignations 
caused 70,391 terminations of employment, lay-offs 54,715. 
Resignations constituted 49.0 percent of the turnover in 
these establishments, lay-offs 38.5 percent. The remaining 
16,963 terminations of employment were due to discharges. 
Among these 78 plants the resignations exceeded the lay-offs 
in 48 plants, the lay-offs exceeded the resignations in 30 
plants. In 37 plants the resignations constituted fifty per- 
cent or more of the total turnover in the plant, in 23 plants 
lay-offs constituted 50 percent or more of the total turnover 
in the plant. Table XX classifies these 78 establishments 
according to the proportion of the turnover in each caused 
by resignations and lay-offs. 

These data are confirmed by figures collected by the 
writer from 33 plants in different industries, which show 
that out of a total of 28,105 terminations of employment 

8 Data collected by the writer for the United States Commission 
on Industrial Relations. 



MISCELLANEOUS CAUSES OF TURNOVER 87 



TABLE XX 

PERCENTAGE OF TURNOVER CAUSED BY RESIGNATIONS AND 
LAY-OFFS IN 78 ESTABLISHMENTS 





Resignations 




Lay-offs 




Percentage 














of total 














turnover due to 


Number of 




Cumula- 


Number of 




Cumula- 


respective causes 


establish- 


Percent 


tive per- 


establish- 


Percent 


tive per- 




ments 




centages 


ments 




centages 


80% to IOO% 


15 


19.2 


19.2 


3 


3-8 


3-8 


70% to 80% 


8 


I0.2 


29 


4 


6 


7 


7 


n-5 


60% to 70% 


4 


6.4 


35 


8 


8 


10 


3 


21.8 


50% to 60% 


10 


12.8 


48 


6 


6 


7 


7 


29-5 


40% to 50% 


12 


15-4 


64 





11 


14 


1 


43-6 


30% to 40% 


9 


"■5 


75 


5 


12 


15 


4 


590 


20% to 30% 


15 


19.2 


94 


7 


4 


5 


1 


64.1 


Below 20% 


5 


6.4 


100 


1 


28 


35 


9 


100. 


Total 


78 


100. 1 




78 


100. 





21,934, or 78.0 percent, were due to resignations, 2,679, or 
9.5 per cent, to lay-offs, 3,382, or 12.0 percent, to discharges 
and 120, or 0.4 percent, to miscellaneous reasons. These 
figures are for various years. 4 Where data were available 
from a single establishment for several years the average 
was taken. The proportion of lay-offs in this group is 
probably considerably below the normal in spite of the fact 
that the establishments were from different industries and 
the data were for different years. 

Data on the turnover among railroad employees collected 
by the writer for the Commission on Industrial Relations 
also show that resignations in general are more numerous 
than lay-offs. 

4 The years for which the figures were taken and the number of 
plants from which figures were available for each year are as fol- 
lows: 191 1, 2 establishments; 1912, 5 establishments; 1913, 9 estab- 
lishments; 1914, 23 establishments; 1915, 9 establishments; 1915- 
1916 (year ending June 30, 1917), 3 establishments; 1916, 4 estab- 
lishments. 



88 THE TURNOVER OF FACTORY LABOR 



TABLE XXI 







Total 














number 












Number 


of ter- 


Number 


Percent 


Number 


Percent 


Occupations 


of roads 


mina- 


of resig- 


of total 


of 


of total 




reporting 


tions of 
employ- 
ment 


nations 


turnover 


lay-offs 


turnover 


Engineers and 














conductors . . . 


IO 


479 


IOO 


20.9 


254 


53-o 


Firemen and 














brakemen .... 


IO 


6,334 


3,146 


49-7 


I,56l 


24.7 


Maintenance of 














equipment. . . 


14 


6i,3 I 3 


30,175 


49.2 


6,384 


10.4 


Maintenance of 














way and struc- 














tures 


14 


H4,357 


56,431 


49-3 


51,984 


45-4 


Station agents, 














station men, 














and telegra- 














phers 


IO 


i4,oS3 


IO,522 


74-9 


2,476 


17.6 



The most interesting feature of these figures is that even 
among the maintenance of way and structure employees 
who are largely composed of section men and other laborers 
whose work is highly seasonal or temporary, the resigna- 
tions exceed the lay-offs. One reason for this is that, in 
view of the heavy character of the work, the wages cus- 
tomarily paid are too low to hold men. The section forces 
are constantly being depleted by the men leaving to work 
upon construction jobs or to work in the harvests at higher 
rates. A second reason is that, on account of the tempo- 
rary character of the work and the low rate of pay, men 
who desire steady employment and who are able to get it 
will not take this sort. It is, therefore, largely done by 
habitual drifters who are even more temporary than the 
work. This applies to the construction gangs and track 
laying gangs more than to the regular section gangs. 

Lay-offs are particularly frequent among children and 



MISCELLANEOUS CAUSES OF TURNOVER 89 

especially among younger children. The reason given for 
leaving their first position in industry by 2,925 children, 
as ascertained by the Bureau of Vocational Guidance of the 
Chicago Public Schools, was "laid-off" in 1,201 cases, or 
41. 1 percent of the total. 5 Resignation due to volition 
of the worker (that is, excluding such causes as sickness, 
needed at home, although this probably was frequently a 
fictitious reason, strike, injured, etc.) caused termination of 
the first employment in 1284 cases or 43.9 percent, — only 
a slightly larger proportion than the terminations due to 
lay-offs. 6 

6 Report of Bureau of Vocational Guidance, Chicago Public 
Schools, 1916, p. 37. 

8 The large proportion of lay-offs among children is due princi- 
pally to the seasonal nature of the industries in which they are 
largely employed and to their employment at short time temporary 
jobs to help out in rush seasons. 

The Illinois factory inspectors found during the year ending 
June 30, 1915, 4,854 children under 16 employed in 21,486 establish- 
ments, ftine industries, however, nearly all of which are highly 
seasonal, employed 52.08 percent of these children. The nine 
industries were: department stores, printing, confectionery, metal 
trades, soaps and washing powders, telegraph and telephone, boot 
and hose, paper boxes, clothing. (Report of Bureau of Vocational 
Guidance, Chicago Public Schools, 1916, p. 26.) 

Children are needed, when a sudden rush of business occurs, as 
office and messenger help and for such work as counting, sorting, 
wrapping, folding, inserting, and packing. When the rush sub- 
sides, on account of their youth and inexperience, there is nothing 
for them to do. They cannot be used as can older workers to fill 
vacancies in the force caused by resignations and discharges. Lay- 
off is the only alternative. 

Lay-offs were found by the Bureau to be more numerous among 
girls than among boys. Half of the girls (50.9 percent) lost 
their first positions on account of lay-off compared with less than 
one-third of the boys (32.3 percent). (Report of Bureau of Voca- 
tional Guidance, Chicago Public Schools, 1916, p. 37.) This differ- 
ence is due probably to the more seasonal work in which the girls 
find employment and also to the fact that boys are more inclined 



90 THE TURNOVER OF FACTORY LABOR 

2. The numerical importance of discharge. 

Discharges in most establishments are fewer than either 
resignations or lay-offs. The 78 establishments from which 
the writer collected figures for the United States Commis- 
sion on Industrial Relations, with a total turnover of 142,- 
069, lost 16,963 men on account of discharge compared 



Percentage of 


Number of plants in which 


Percent of 
all plants 


discharges to 


discharges were the specified 


total turnover 


percentages of the total turnover 


Less than 5% 


21 




26.9 


5% to 10% 


Id 




17.9 


10% to 15% 


16 




20.S 


15% to 20% 


13 




16.7 


20% to 25% 


5 




6-4 


25% to 30% 


5 




6.4 


30% to 40% 


1 




i-3 


40% to 50% 


2 




2.6 


50% and over 


1 
78 




1-3 


Total 


100. 



with 70,391 on account of resignation and 54,715 on account 
of lay-off. Discharges constituted 11.9 per cent, of all 
terminations of employment in these establishments. The 
table above classifies these 78 establishments according to 
the percentage of the turnover caused by discharges. 

The proportion of the turnover caused by discharges 

than girls to give up their positions on their own initiative. Girls 
are employed in stores, in printing establishments and mail order 
houses to assist in getting out circulars and catalogues (all inter- 
mittent work), in the highly seasonal millinery trade, in the gar- 
ment trades, and in the highly seasonal confectionery business. 
They are somewhat more inclined than boys to put up with unsatis- 
factory conditions, show somewhat less initiative than boys in 
searching for chances to better themselves, and especially when 
inexperienced in industry are somewhat timid about searching for 
work. All of these reasons tend to cause them to remain in their 
positions rather than resign. 



MISCELLANEOUS CAUSES OF TURNOVER 91 

among various classes of railroad employees is shown in 
Table XXII. 

TABLE XXII 

PROPORTION OF TOTAL TURNOVER CAUSED BY DISCHARGES 
AMONG CERTAIN CLASSES OF RAILROAD EMPLOYEES 





Number of 


Total 
number of 


Total 


Percentage 

of discharges 

to total 

turnover 


Occupation 


roads 


terminations 


number of 




reporting 


of 
employment 


discharges 


Engineers and 










conductors 


IO 


479 


125 


26.I 


Firemen and 










brakemen 


IO 


6,334 


1,627 


25-7 


Maintenance of 










equipment 


14 


61,313 


3,514 


5-7 


Maintenance of way 










and structures. . . 


14 


H4,357 


5,942 


5-2 


Station agents, sta- 










tion men and 










telegraphers. . . . 


IO 


i4,oS3 


1,055 


75 



Thirteen street railway companies with a total of 30,968 
terminations of employment, lost 6,611 men on account of 
discharge. 

Among 33 establishments from which the writer col- 
lected figures, the discharges exceeded the lay-offs. Dis- 
charges numbered 3,382, or 12.0 per cent., out of 28,105 
terminations of employment, lay-offs 2,679, or 9.5 per cent. 

What proportion do discharges constitute of the average 
force? The proportion varies considerably, but in most 
cases discharges per year do not exceed 10 percent of the 
average force. The ratio of discharges to the average force 
is larger in the case of establishments with high turnover 
rates. The reason for this is that discharges are most fre- 
quent among newly hired men. 7 A large turnover usually 

7 In a Chicago plant investigated by the writer 40 out of 115 men 
hired in six departments during the year 1916 were discharged 



92 THE TURNOVER OF FACTORY LABOR 



t-4 

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IS 



g g 

M 

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s H 
3 B 

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§§ 

« Q 

w w 
w < 

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to 

w 
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t4 



a 



§J 2 g § 



6b 
p 

H o 



On t>.00 lO M t^ H 
O <N 0\ t^ lO <> Tf 






co On covo co rJ-00 
vO t^ co co *n C^vO 
0\ fO lO lO >0 N \0 

vcT c>T tC cT co 



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fONH tJ- t>» O W 

0> ^t" H M M Q\ M 

t? cf oo~ tC c> co^cT 

lO M CO Tj- CO M 



-8...M 



00 00 O IOVO »0 rfr 

t>. 01 M H M 



8. - 
a- - 



St) C. H 



o o oo vo •{£ 






o o o o o^ 

O O 00 VO tj-,£ 

<n h pq 



MISCELLANEOUS CAUSES OF TURNOVER 93 

means that a large number of men are being hired to re- 
place those who leave and consequently discharges are 
numerous. 

The tendency of the ratio of discharges to the force to be 
greater as the turnover rate increases is illustrated by Table 
XXIII showing the ratio of discharges to the average of the 
maximum and minimum forces employed during the year. 8 

Table XXIV classifies these 78 plants according to the 
size of the turnover and the ratio of discharges to the aver- 
age of the maximum and minimum forces. 

TABLE XXIV 

PERCENTAGE OF DISCHARGES TO AVERAGE OF 
MAXIMUM AND MINIMUM PAYROLLS 



Turnover rate 



All establish- 
ments 

200% and over 
100% to 200% . 

80% " 100%. 

60%" 80%. 

4°%" 60%. 
Below 40 % . . . 



Total 



78 



20 

5 
16 

15 
14 



Percentage of discharges to average o 
maximum and minimum payrolls 



Be- 
low 
5% 



27 
I 
2 
3 

8 
4 
9 



5% 

up 
to 

10% 



23 

I 

5 

I 

5 
7 
4 



10% 

up 

to 

15% 



15% 
up 
to 

20% 



20% 
Up 

to 

25% 



25% 

up 
to 

30% 



30% 

up 
to 

40% 



40% 

up 
to 

50% 



50% 

and 
over 



Among 28 plants with a turnover of 100 percent or 
more, discharges constituted 15 percent or more of the 
average of the maximum and minimum forces in 18 or 

before the end of the year. It is natural that, after this weeding 
out process has taken place, discharges should be less frequent. 

8 As explained above, in view of the difficulty in obtaining figures 
showing the actual average number of men, the average of the 
maximum and minimum number on the payrolls during the year 
is taken. 



94 THE TURNOVER OF FACTORY LABOR 

64.3 percent, but, in only two out of 50 concerns with a 
turnover below 100 percent did the discharges equal 15 
percent of the average of the maximum and minimum 
forces. 

The unweighted averages of the percentage of discharges 
in these 78 plants to the average of the maximum and mini- 
mum forces are as follows: 



Turnover rate 


Number of 
establishments 


Unweighted average of 
percentage of discharges 
to the average of the maxi- 
mum and minimum forces 


All establishments 

200 percent and over 

100 percent to 200 percent 
80 " " 100 " 
60 " " 80 " 
40 " " 60 " 

Below 40 percent 


78 

8 
20 

5 
16 

i5 
14 


12 

34 

19 

7 

5 

8 

3 


5 
5 
5 
3 
6 

9 

8 



Because the number of discharges is closely related to 
the number of men hired, it is desirable to determine the 
proportion of men hired who are discharged within a given 
period, say a year. The discharge rate expressed merely as 
a percentage of the average force discharged may be de- 
ceptive. The number of discharges in a department in com- 
parison with the average force may be low because the num- 
ber of men hired in comparison with the average force may 
be low, but the proportion of men hired who are discharged 
within a year of being employed may be extremely high 
indicating inefficient hiring or an inadequate training system. 

Discharges in most plants appear to constitute less than 
20 percent of the number of men hired. They appear to 
average from 10 to 15 percent of the number of hirings. 
Seventy-eight establishments discharged 16,963 men in the 
same period (twelve months) during which they hired 



MISCELLANEOUS CAUSES OF TURNOVER 95 

139,966 men. Discharges constituted 12. 1 percent of hir- 
ings. The unweighted average of the percentage of dis- 
charges to hirings in this group of 78 plants was 12.8 
percent. 

The following is a classification of the 78 establishments 
according to the ratio of discharges to hirings. 



Percentage of discharges Number of establishments 

to hirings in respective classes 

Less than 5 percent 16 

5 percent to 10 percent 17 

10 " "15 " 16 



IS 
20 

25 
30 
40 
50 



20 

25 

30 
40 

So 



16 
4 
4 

4 

1 



and above None 



Twelve additional plants from which the writer collected 
figures discharged 12,104 men m the same period in which 
they hired 122,460, a ratio of 9.9 discharges to 100 hirings. 
In seven of the twelve plants the ratio of discharges to 
hirings was between 5 and 15 percent. In one case the rate 
was 4.8 percent, in another 15.8 percent. The highest rate 
was 33.3 percent, the unweighted average for the group 
was 14.35 percent. 

The ratio of discharges to hirings shows no regular ten- 
dency to vary with the size of the turnover as does the ratio 
of discharges to the average force. On the contrary the 
ratio of discharges to hirings appears to average substan- 
tially the same among groups of establishments with high 
turnover rates as among groups of establishments with low 
turnover rates. This constancy of ratio indicates that the 
number of discharges is largely determined by the number 
of hirings. Table XXV shows the ratio between the num- 
ber of discharges and the number of hirings in 78 plants ac- 
cording to the size of the turnover, and the unweighted aver- 



96 THE TURNOVER OF FACTORY LABOR 

age of the number of discharges per ioo hirings among the 
establishments in each class. Contrast these figures with 
those on pages 92 and 93 showing the variation in dis- 
charges to the average force according to the size of the 
turnover. 

TABLE XXV 

RATIO BETWEEN THE NUMBER OF DISCHARGES AND THE NUMBER OF 

HIRINGS IN 78 PLANTS ACCORDING TO THE 

SIZE OF THE TURNOVER 













Unweight- 


' 










ed average 




Number 

of 
establish- 






Number 


of number 




Number 


Number 


of 


of 


Turnover rate 


of 


of 


discharges 


discharges 




ments 


hirings 


discharges 


per 100 
hirings 


per 100 
hirings in 
the indivi- 
dual plants 


All establishments 


78 


139,966 


16,963 


12. I 


12.8 


200% and over . . , 


8 


30,394 4 


2,379 


7-8 


14-5 


100% to 200% 


20 


50,144 


7,533 


I50 


I5-I 


80% " 100%.... 


5 


6,557 


536 


8.2 


8-3 


60% " 80% . . . 


16 


28,818 


2,553 


8.9 


8.9 


40%" 60%... 


15 


19,811 


3,294 


16.6 


14-3 


Below 40 percent . 


14 


4,242 


668 


15.8 


I3-I 



The effect of the number of hirings upon the number of 
discharges must be taken into account in explaining the 
differences among different classes of workers in the ratio 
of discharges to the average number on the payroll. Be- 
cause among skilled men hirings are few in proportion to 
the size of the force, the ratio of discharges to the average 
force is less among skilled men than among the force in 
general. In a large Chicago plant the comparative rates 
were as shown in the table on page 97. 

The ratio of discharges to the number of hirings, how- 
ever, shows that newly hired tradesmen are hardly less 
likely to be discharged than workmen in general. The per- 



MISCELLANEOUS CAUSES OF TURNOVER 97 





1913 


1914 




Aver- 
age 
force 


Number 

dis- 
charged 


Dis- 
charge 
rate 


Aver- 
age 

force 


Number 

dis- 
charged 


Dis- 
charge 
rate 


Entire plant . . . 
Tradesmen 9 . . 


5,199 

520 


495 
19 


9-5 

3-7 


4,783 
478 


225 
7 


4-7 
1.5 




1915 




1916 




Entire plant . . 
Tradesmen 9 . . 


4,795 
480 


114 

8 


2.4 
1-7 


5,994 
599 


467 
II 


7.8 
1.8 



centage of discharges to the number of men hired among 
tradesmen and the force as a whole was : 



Entire plant . 
Tradesmen. . 



1913 1914 1915 1916 

20.4% 43-5% 8.4% 8.1% 
19.0 31.8 2.9 9.2 



In another Chicago plant the ratio of discharges to 
hirings among the skilled and higher grade of semi-skilled 
workers was greater than for the plant as a whole. In 1916 
the plant hired 569 men and discharged 138, or 24.3 percent 
of the number hired. Of 115 skilled men and higher grade 
semi-skilled workers, 40, or 34.8 percent were discharged 
during the year. 

The discharge rate, as is to be expected, is decidedly 
higher among men than among women. In an eastern 
textile mill the number of discharges of men in 19 15 was 
4.4 percent of the number of men on the payroll at the be- 
ginning of the year (a typical payroll) and the discharges 
among women 2.25 percent of the number of women on 
the payroll at the beginning of the year. The following are 

9 The average force of tradesmen was estimated by taking 10 
percent of the total average force, the proportion tradesmen were 
found to constitute of a typical payroll in 1913. 



98 THE TURNOVER OF FACTORY LABOR 

the comparative discharge rates among the men and women 
employed by an eastern printing and binding establishment : 

Men 1912 1913 1914 1915 

(8 months) 

Average payroll 445 352 349 325 

Number discharged 33 26 15 16 

Percent of number dis- 
charged to average pay- 

r °U 7-4 7-4 4-3 4-9 

Women 

Average payroll 258 210 184 171 

Number discharged 11 14 8 1 

Percent of number dis- 
charged to average pay- 
roll 4.3 6.7 4.3 .6 

The rates of discharge among youths and girls (mostly 
under 21) in a Chicago metal working plant from 1913 to 
1916 were: 





1913 


1914 




Approxi- 
mate 

average 
force 


Number 

dis- 
charged 


Dis- 
charge 
rate 


Approxi- 
mate 

average 
force 


Number 

dis- 
charged 


Dis- 
charge 
rate 


Youths 

Girls 


831 
265 


l8l 
19 


21.8 
7.2 


765 

244 


83 
II 


IO.8 

4-5 






IOI5 


1916 


Youths 

Girls 


767 
245 


28 

7 


3-7 
2.9 


959 
306 


146 

30 


15-2 

9.8 





The actual number of youths and girls discharged each 
year is known but it was necessary to estimate the average 
number of each employed each year. This was done by 
taking the percentage of the average total force of the plant 
which the youths and girls were found to constitute of a 
typical payroll in 1913 — 16 percent and 5.1 percent re- 



MISCELLANEOUS CAUSES OF TURNOVER 99 

spectively. The discharge rates are not, therefore, absolute- 
ly accurate but are believed to be substantially so. In the 
two years of depression, 1914 and 191 5, there is very little 
difference between the rates for the two classes — not enough, 
in view of the approximate character of the figures, to be 
significant. In both 19 13 and 191 6, however, the rate 
among the youths was substantially higher than the rate 
among the girls. 

The Bureau of Vocational Guidance of the Chicago Pub- 
lic Schools found that 162, or 10.5 percent, of 1,541 boys 
lost their first position because of discharge and 89, or 6.6 
percent of 1,353 girls. 10 

The percentage of discharges to the average force appears 
from the slight data available to be higher among youths 
and girls than among older employees. This is to be ex- 
pected on account of the larger turnover among youths 
and girls and the greater number of new workers hired in 
proportion to the force. The percentages of discharges to 
the average force among youths, girls, and adult employees 
in a large Chicago plant were : 





1913 


1914 


1915 


1916 


Adults . . . 


. 7.2 


3-5 


2.1 


6.1 


Youths . . . 


. 21.8 


10.9 


3-7 


152 


Girls 


. 7.2 


4-5 


2.9 


9.8 



An interesting question is whether the weaker sense of 
responsibility, the greater carelessness and shiftlessness 
which is to be expected among boys and young men due to 
their youth and lack of industrial training results in a 
higher discharge rate among them than among adults. This 
is best shown by comparing the ratio of the number of dis- 
charges to the total number hired among youths and 
adults. The following data from the Chicago plant men- 

10 Report of Bureau of Vocational Guidance, Chicago Public 
Schools, 1 91 6, p. 37. 



ioo THE TURNOVER OF FACTORY LABOR 

tioned above indicate that due to these causes or others the 
number of discharges in relation to the number hired is 
greater among youths than among adults : 





1913 


1914 




Hired 


Dis- 
charged 


Percent 
of dis- 
charges to 
hirings 


Hired 


Dis- 
charged 


Percent 
of dis- 
charges to 
hirings 


Adults. . 
Youths. . 


1,520 
806 


295 
l8l 


19.4 
22.5 


294 
184 


131 
83 


44.6 

45-i 




1015 


1916 


Adults. . 
Youths. . 


1,056 
206 


79 
28 


7-5 
13.6 


4,039 
1,376 


291 
146 


7.2 
10.6 



3. Effect of prosperity and depression upon the rela- 
tive number of resignations, lay-offs, and discharges. 

Resignations and discharges are much more numerous 
in times of prosperity than in times of depression. Lay-offs, 
on the other hand, appear to be less affected by prosperity 
and depression. In the early stages of depression when a 
general reduction of forces is taking place, lay-offs may 
temporarily increase, but the meager data available indicate 
that the increase in the number of lay-offs caused by depres- 
sion is much less than the decrease in the number of resigna- 
tions and discharges. 

The following examples comparing the number of resigna- 
tions, lay-offs, and discharges in 1913 and 1916, years of 
prosperity, with 1914 and 1915, years of depression, illus- 
trate the effect of prosperity and depression. 11 

"The year 1915 was a transition year from depression to pros- 
perity. In the east during the latter part of the year there was 
a strong labor demand, but in the west the recovery was slower. 
The figures quoted above are all from establishments in the middle 
west, where the labor market was that of a year of depression. 



MISCELLANEOUS CAUSES OP TURNOVER 101 



METAL WORKING ESTABLISHMENT 



1913 1914 

Resignations 2,788 1,068 

Lay-offs 216 522 

Discharges 219 49 

Total 3,223 1,639 

TELEPHONE COMPANY 

Resignations 

Lay-offs 

Discharges 

Miscellaneous 

Total 2,288 3,736 



1915 


1916 


980 


2,457 


1,086 


940 


193 


323 


29 


16 



RUBBER GOODS 
1913 1914 

Resignations 19,161 4,176 

Lay-offs 2,099 2,167 

Discharges 2,641 695 

Total. 23,901 7,038 



1915 


1916 


5,037 
806 

901 


23,124 

537 
i,749 



6,744 26,610 



METAL WORKING ESTABLISHMENT 



1913 

Resignations .... 238 

Lay-offs 32 

Discharges 164 

Miscellaneous 

or unknown. . 75(#) 

Total 509 



1914 


1915 


1916 


133 
51 

75 


107 
42 
62 


332 
138 


4 


1 


25 


263 


212 


495 



(a) The detailed records for this year from February 9 to March 
22 were missing so that it was impossible to classify 74 instances of 
termination of employment occurring within this period. Were 
the distribution of these 74 cases the same as that of the remaining 
434, the number of resignations for the year would be 278, the 
number of lay-offs 37, and the number of discharges 193. 



102 THE TURNOVER OF FACTORY LABOR 

METAL WORKING ESTABLISHMENT 

1913 1914 1915 1916 

Resignations 1,996 616 676 3,654 

Lay-offs 188 27 240 85 

Discharges 495 225 114 467 

Total 2,679 888 1,030 4,206 

Most interesting is the relation of prosperity and depres- 
sion to the number of discharges. That discharges are 
fewer in times of depression than in times of prosperity 
is borne out by many instances in addition to those cited 
above. For example a street railway company which dis- 
charged 71 men in 1913 discharged only 43 in 1914; a print- 
ing and binding establishment which discharged 40 hands 
in 1913, discharged 23 in 1914 and 20 in 1915; a depart- 
ment store which in the six months, December 1, 1914 to 
May 31st, 191 5 discharged 41, discharged 78 in the six 
months from December 1, 1915 to May 31st, 1916 when 
prosperity had returned. 

The reasons why discharges are fewer in years of de- 
pression probably are: (1) Fewer men are hired. Most 
discharges occur among newly hired men who fail to make 
good. (2) On account of the scarcity of work, men are 
more careful to avoid being discharged. It is a well recog- 
nized fact that workmen do more and better work in times 
of depression than in times of prosperity. They realize that 
the poorest and slowest workmen will be laid off first when 
the force is reduced. Counteracting in part these tendencies 
is the fact that in times of prosperity when men are scarce 
the management is willing to put up with shortcomings 
which it will not tolerate in times of depression when good 
men are plentiful. 

If the discharge rate be calculated as a percentage of the 
number of men hired instead of as a percentage of the 
average force, it becomes clear that the decrease in the num- 



MISCELLANEOUS CAUSES OF TURNOVER 103 

ber of discharges in times of depression is largely due to the 
decrease in the number of men hired, for the ratio of dis- 
charges to the number of hirings increases rather than de- 
clines, or declines very slightly. The following figures con- 
trast the percentage of discharges to hirings in four plants 
for 1914 and 1915, years of depression, and 1913 and 1916, 
years of prosperity: 



Year 


Metal working 
plant 


Metal working 
plant 


Rubber goods 


Printing and 
binding 


1913 
1914 

1915 
1916 


20.4% 
43-5 
8-4 

8.1 


35-8% 
37.8 
25.1 
24.2 


11-9% 

8.9 

8.1 

5-8 


26.6% 
23.2 

33-3 



PART II 
THE COST OF THE TURNOVER 



CHAPTER VI 

THE COST OF THE TURNOVER TO THE EMPLOYER 

i. Factors of cost to employers. 

The cost of the turnover to the employer falls into two 
principal parts : 

1. The cost of breaking in a new man for the place. 1 

2. The limitation placed by the turnover upon the 
amount which the employer can profitably invest in his 
workmen and consequently the limitations placed upon the 
output which the employer can obtain from his workmen. 

i. The cost of breaking in a new man consists of the 
following principal items: 

a. The cost of hiring. This includes employment office expense 
cost of medical examination and of advertisements, pro-rated over 
the number hired. 

b. The cost of training. This includes the share of the training 
department's cost and the value of the foreman's or other work- 
man's time spent in instructing the new hand. 

c. The extra labor cost. In case of payment by the""piece, this 
item includes day wages in excess of piece rate earnings paid new 
operatives during the learning period until they are able to make 
a fair day's wage at piece work. In case of payment on a time 
basis this item includes the cost of the time above the normal 
which the inexperienced worker takes to perform the operation. 

1 That it is not necessary immediately to replace the worker does 
not of course alter the fact that a loss is sustained by the resigna- 
tion of a worker or the necessity of laying him off, because the 
number of men which must be broken in is increased. The addi- 
tional cost of breaking in workers attributable to seasonal fluctua- 
tion in the volume of business is an item to be included in calcu- 
lating the amount which can profitably be spent to regularize 
employment. 

107 



lo8 THE TURNOVER OF FACTORY LABOR 

If it is necessary to hire extra men to make up for the deficiency in 
production until the new worker attains the normal output, all 
wages paid these men on a time basis are included in the labor cost 
of the turnover. If it is necessary on account of the lesser effi- 
ciency of the new worker for regular employees to work overtime, 
all time wages paid them on account of overtime or holiday work 
and all wages in excess of the regular piece rate or bonus rates paid 
on account of overtime or holiday work are items in the labor cost 
of the turnover. 

d. Cost of extra power, lubrication, and materials caused by 
reduced rate of output. If, because of the reduced rate of output, 
it is necessary to drive the machinery ten hours to produce an 
output which at the normal rate could be produced in five, the cost 
of the power, lubrication, etc., necessary to run the machinery the 
additional five hours is an item in the cost of breaking in the new 
workman. This item also includes the cost of power and lubri- 
cation used in driving machinery which it would have been un- 
necessary to use had the machinery used by the new operative 
produced its normal amount. 

e. Profits which would have been realized upon orders which, 
because of the smaller productive capacity during the period before 
the vacancy is filled and during the period of breaking in the new 
man, it is impossible to fill. 

f. Interest, depreciation, insurance, taxes, and repairs on addi- 
tional plant investment necessary because of the lessened output 
caused by the turnover. 

g. Cost of work spoiled by new operatives in excess of the normal 
rate of spoilage by workmen experienced in the operation. 

h. Greater wear and tear on machinery. This includes the 
greater cost of repairs due to breakage and the greater depreciation 
due to harder usage, caused by the inexperience of the operative, 
and to the necessity of running machinery a longer period in order 
to obtain a given output. This item includes extra wear and tear 
of all kinds on machinery which it would be unnecessary to operate 
were the normal production maintained on the machinery used by 
the new hand. 2 

2 This is, distinct from depreciation and repairs on additional 
equipment required on account of the lessened output, which is 
included under "f." It may be necessary to have certain machinery 
which it is not necessary to operate full time. Elimination of the 
loss of production caused by the turnover would not permit the 
equipment used only part time to be dispensed with. The deficiency 
in production caused by the turnover, however, may necessitate 
operating the machinery which is regularly used part time, a 
longer period than would otherwise be necessary. The wear and 



THE COST OF TURNOVER TO EMPLOYERS 109 

i. Increased cost of accidents due to greater accident frequency 
during the learning period. To employers who carry their own risk, 
this item is of great importance. To employers who receive a 
reduction of premium rates for a low accident record this item is 
also of considerable importance. To employers who pay a fixed 
insurance rate based on the payroll, this item is of less immediate 
importance. The high accident frequency among green employees 
greatly increases accident rates, however, and a general reduction 
in the turnover rate resulting in a lower accident rate would make 
possible in time a reduction in the cost of accident insurance. 

The increased accident cost includes not merely the cost due to 
greater accident frequency among inexperienced men, but also the 
greater liability to accident due to the fact that the lower produc- 
tive capacity of new men requires the employment of a larger number 
of men. 

j. The loss of good will and business, and the expense of making 
adjustments and replacements for goods defective because of the 
greater number of mistakes made by inexperienced workers, and 
the loss of business and good will and the extra expense caused by 
the less satisfactory service rendered customers by inexperienced 
employees. 

2. The limitation placed by the turnover upon the train- 
ing which can be given workmen is a cost which cannot be 
definitely ascertained and which has been generally neglected 
in discussions of the cost of the turnover. Nevertheless it 
is one of the most important of all items of cost. Stability is 
a fundamental prerequisite to efficiency in the force because 
efficiency is largely conditioned upon elaborate and intensive 
training of workers. Such training is possible only when 
the force is relatively stable. If the probability is great that 

tear caused by this extra period of operation is attributable to 
the turnover. For example, a factory may require two of a cer- 
tain size and type of lathe. Both machines are necessary, regard- 
less of the turnover, but it is necessary to operate one of them 
only 50 percent of the time. During the period of breaking in 
a new man on one of these lathes, its output may be reduced 25 
percent, so that in order to make up for the deficiency it is 
necessary to operate the second machine 75 percent of the time 
instead of 50 percent. The wear and tear attributable to this addi- 
tional period of operation is an item in the cost of breaking in the 
new worker. 



no THE TURNOVER OF FACTORY LABOR 

new men hired will leave shortly, the employer cannot incur 
a great expense in training them because he is unable to re- 
cover his investment in the workers before they leave. 
If, however, the prospect of new men remaining for some 
time is good, the employer may profitably incur considerable 
expense in developing their skill. 

As the prospects of newly hired men's becoming perma- 
nent employees grow better, we may expect large sums to 
be spent by employers upon elaborate training systems and 
upon the intensive development of workers which will render 
them far more productive than at present. 

2. The ascertainment of the cost of breaking in men. 

No attempt will be made here to outline a model cost 
accounting system for indicating the cost of the turnover, 
which, with variations, might be adapted to specific plants. 
The purpose is simply to indicate some of the more gen- 
eral and fundamental considerations which must be taken 
into account in estimating the cost of the turnover. 

The accurate estimate of the turnover cost is extremely 
difficult. The precise dollars and cents amount of many of 
the items enumerated in the preceding analysis of the turn- 
over cost cannot be accurately ascertained. The amount 
of other costs can be ascertained only by very minute and 
laborious investigation and by the accumulation of volumin- 
ous data. Such costs as excess depreciation of equipment 
caused by the turnover, interest, depreciation, insurance, 
taxes and repairs on the additional plant investment neces- 
sitated by the turnover, loss of good will and business, and 
expense of adjustments and displacements due to the greater 
number of errors made by inexperienced men, lessened 
efficiency of labor due to the limitation upon the training 
which can profitably be given new men and due to the 
demoralization of labor by the uncertain duration of em- 
ployment and frequent loss of job, cannot be definitely as- 
certained. Items which can be ascertained only with much 



THE COST OF TURNOVER TO EMPLOYERS in 

labor and difficulty are excess breakage to machinery, ex- 
cess spoilage, excess accident cost, and excess consumption 
of materials and supplies due to the inexperience of new 
men. In order to estimate these costs, it is necessary to 
ascertain what is the typical cost due to breakage of ma- 
chinery, spoilage, accidents, and consumption of materials 
among experienced men, and then to ascertain the typical 
excess cost incurred by new men in these respects until they 
reach what is regarded as normal efficiency. The efficiency 
of different workmen differs and for this reason the amount 
of breakage to machinery, spoilage of materials, frequency 
and seriousness of accidents, and consumption of materials 
differs. In order to estimate with great accuracy the typical 
breakage, spoilage, accident, and consumption of material 
rates among experienced and among new men, it is necessary 
to obtain an average based on data from a sufficient number 
of cases to represent a typical distribution of ability. 

In plants where these data are kept as part of each work- 
man's efficiency record, the calculation of the average per- 
formance of experienced men and new men is compara- 
tively simple. The collection of these data for the mere 
purpose of throwing light on the cost of the turnover, how- 
ever, is not likely, to be worth while, and in plants where the 
data are not collected as a check upon the efficiency of in- 
dividual workmen, another method of estimation must be 
resorted to. The simplest and most practical seems to be to 
select one or several newly hired workmen of some or 
more than average promise and to keep a detailed record 
of their breakage, spoilage, and consumption of materials 
both during their learning period and after they have at- 
tained normal proficiency. If the workers turn out to be 
somewhat above the average in proficiency, their excess 
breakage, spoilage, and consumption of materials during the 
learning period should be somewhat less than the excess 
caused by the worker of average ability and should, there- 



ii2 THE TURNOVER OF FACTORY LABOR 

fore, be a conservative estimate of the amount of these 
items of cost in breaking in men of average ability. 3 

The numerous variables which affect almost every item 
in the cost of breaking in men render the cost for one job 
no indication of the cost for another job even though the 
degree of skill required to perform each job is substantially 
the same. One workman may work with extremely fragile 
and high priced material or with delicate and expensive ma- 
chinery, easy to get out of adjustment, another with crude, 
inexpensive material and heavy machinery which the lack 
of skill of the new man is unlikely to injure. The danger 
of the new man's causing injury to himself or to others 
varies greatly between jobs of equal skill. In the case of 
some operations, defects in the operative's work are easy to 
detect, in the case of other operations, defects are difficult 
to detect and may reach the customer and cause trouble. 
For all of these points of variation it is impossible to take 

*The question will be asked, when has the worker passed from 
the learning stage and reached the stage of normal proficiency? 
It is obviously impossible to designate a specific point at which a 
worker suddenly ceases to be a learner and becomes a full-fledged, 
normally proficient workman. It is a case of gradual development 
and of gradual transition. The fact that no precise point of transi- 
tion can be designated is, however, of little consequence. If the 
rate of output of a worker be plotted, it will be found to rise 
sharply at first (usually a step-like progress — that is, rapid prog- 
ress followed by stationary stages) and to continue to rise at a 
constantly decreasing rate. The rise in efficiency continues often for 
several years, but after the first few months it is very slow. The 
point at which the rapid rise in efficiency ceases and at which the 
curve becomes substantially level marks the attainment of normal 
productivity. As the decline in the rise of the curve is gradual, 
no point in particular can be selected as marking the transition. 
The very fact that the worker's efficiency is developing rather 
slowly at this stage causes it to make little difference in the result 
precisely which point is selected. For the sake of conservatism in 
estimating breaking in costs, the learning period should be under- 
estimated. 



THE COST OF TURNOVER TO EMPLOYERS 113 

the cost of breaking in a man for any given job and from it 
to estimate that the cost of breaking in men for jobs of 
substantially the same degree of skill is substantially the 
same, or to lump the jobs in a plant according to skill and 
to estimate that the cost of breaking in skilled artisans is a 
given amount, semi-skilled workers another amount, and 
unskilled workers another amount. 4 

In calculating the cost of breaking in men, the fundamen- 
tal fact must not be overlooked that the cost data are to 
be used not to figure a selling price but to figure a buying 
price. The data purport to show how much the employer 
can afford to spend to reduce his turnover. The fundamen- 
tal rule of statistical and accounting practice that errors 
must be on the side of conservatism works differently in 
ascertaining the cost of breaking in men than it does in 
ascertaining the cost of production. The inevitable in- 
accuracies in much of the data on the basis of which the 
estimates of the turnover cost are made render the ob- 
servance of this rule of particular importance. In ascer- 
taining the cost of production which is to be used to fix 
a minimum selling price, it is conservatism to overstate 
rather than to understate the costs. In ascertaining the 
cost of breaking in men which is to be used as a guide 

4 The cost of breaking in men for relatively unskilled work is 
often surprisingly high. Street railway motormen are an example. 
Motormen rank only as moderately semi-skilled men and receive 
wages less than are received by factory workers doing moderately 
difficult work. The cost of breaking them in, however, is esti- 
mated at from $200 to $400. The reason for this is that the mis- 
takes which motormen are likely to make may have very costly 
consequences. They are entrusted with valuable equipment, inju- 
ries to which may be costly. Their mistakes are likely also to 
result in personal injuries, which are expensive. Not only do new 
motormen cause considerable expense on account of their mis- 
takes, but to reduce these mistakes the companies undergo the 
expense of giving motormen an intensive training course and indi- 
vidual supervision for some time after they commence operating. 



ii 4 THE TURNOVER OF FACTORY LABOR 

for expenditures, it is conservatism to understate rather 
than overstate the costs. 

It was pointed out in Chapter IV that the greater num- 
ber of terminations of employment occur among newly 
hired men. Many of these men leave or are discharged 
after a very short period of employment before they have 
learned their new job. It is frequently necessary, there- 
fore, to hire several men before a permanent employee 
is obtained. For example, in a Chicago metal working 
plant, out of 24 toolmakers hired during the year 1916, 
6 left within the same month in which they were employed, 
3 in the next month, and 2 more in the third month. Of 
9 planer hands hired during the year, 1 left after work- 
ing less than a week and 2 more within a month of being 
hired. Of 34 lathe hands leaving in the course of the year, 
6 left within their first week of employment, 7 more within 
the second week, 3 more within the first month, and 5 
more within two months. Out of 19 bench-hands hired 
during the year, 5 left within a week of being hired, 4 
more within 2 weeks, 1 more within a month. Out of 
14 assemblers hired, 5 left within a month, and out of 14 
miscellaneous semi-skilled workers in another department 
hired during 19 16, 2 left within a week, 2 more within 
two weeks and 2 more within a month. 

It is, of course, erroneous to charge each' one of these 
terminations of employment with the total cost of break- 
ing in a new man for the job. The men who leave after 
several days' or several weeks' employment are, of course, 
not responsible for as great a cost as is necessary to com- 
pletely break in a man for a position. It is, therefore, 
erroneous to estimate the cost of the turnover by mul- 
tiplying the number of terminations of employment in 
a given position by the cost of completely breaking in a 
man for the position. It is proper to charge to the original 
termination of employment the total amount spent upon 



THE COST OF TURNOVER TO EMPLOYERS 115 

breaking in all of the men hired for the vacancy until 
it is permanently filled. In this case there is nothing to 
charge against the terminations of employment of the tran- 
sients who left before learning the job, since the cost of 
filling their places is already charged against the original 
termination of employment. It is also proper to charge 
to each termination' of employment the cost incurred in 
breaking in the next worker hired, whether he is com- 
pletely broken in or leaves within a short period. 

Since the cost of the turnover is not equal to the total 
cost of completely breaking in a man times the number of 
terminations of employment, it is necessary, in order to 
ascertain the cost of the turnover, to know the approximate 
average amount spent upon breaking in men per termination 
of employment. The best method of ascertaining this 
amount is to ascertain the total amount actually spent upon 
breaking in men for a given position, both those who left 
before attaining normal efficiency and those who remained 
a sufficient period to attain normal efficiency, over a period 
long enough to give the typical experience of the plant, 
and to divide by the number of workers involved. The 
resulting average is the average expenditure for breaking 
in new men attributable to each termination of employ- 
ment in the position, assuming each termination of em- 
ployment requires sooner or later the hiring of a new man. 

The error of assuming that every man who is hired 
goes through the entire breaking in period and represents 
a loss to the company of the entire cost of breaking in 
a man at that job is made by both Mr. Alexander and Mr. 
Grieves in estimating the cost of the turnover. 5 

5 M. W. Alexander: "Hiring and Firing: Its Economic Waste," 
Proceedings of the National Machine Tool Builders' Association, 
1914, pp. 98-99; American Industries, v. XVI, pp. 17-22; Annals of 
the American Academy of Political and Social Science, v. LXV, 
May, 1916, on "Personnel and Employment Problems," p. 128; W. A. 



n6 THE TURNOVER OF FACTORY LABOR 

A second error in calculating the cost of the turnover 
is to neglect the fact that newly hired men in many cases 
do not receive the full wage received by experienced 
workmen. It is a common practice in hiring men for jobs 
which are paid by the hour to say to the applicant : 

"We will start you in at so much per hour and when 
you show you can do the work we will raise you to such 
and such an amount." 

The smaller amount paid the man during the learning 
period makes up in part for the cost of breaking him in 
and must be deducted in calculating the cost of the turn- 
over. It is probably true that in most cases the workman's 
hourly rate is not raised to the standard for experienced 
employees until he has maintained the normal rate of pro- 
duction for some time. During this time the employer 
obtains the standard output at wages slightly less than the 
standard rate. The feeling is very prevalent among mana- 
gers that even in the case of equal ability older men are 
entitled to a little more than new men. Because older men 
are given slightly more, a new man may actually be the 
cheaper. 

The manner in which wages rise as duration of em- 
ployment increases is illustrated by the data given in 
Table XXVI showing the wages received by tool and pat- 
tern makers in a large Milwaukee metal working plant. 
These men were all paid solely by the hour. The records 
showed the date each workman started, the initial wage re- 
ceived, and the date and amount of each change in the rate 
of every workman. For the sake of convenience I have 
reduced the figures to a percentage basis. 

Grieves of the Jeffrey Mfg. Co., Columbus, Ohio, "The Handling 
of Men," privately printed. 

Mr. Alexander attempts to allow for the less cost of breaking 
in men who have worked at the same occupation before, but Mr. 
Grieves apparently leaves that factor out of account. 



THE COST OF TURNOVER TO EMPLOYERS 117 



TABLE XXVI 

ADVANCE IN WAGES AS DURATION OF 

EMPLOYMENT INCREASES 



Duration 
of 

employment 



Start 

6 months . 

1 year. . . 

2 years . . 

3 years. . 

4 years . . 

5 years. . 

6 years . . 

7 years . . 



21 tool- 
makers 
employed 
6 months 
or more 



IOO. O 
IOI.9 



16 tool- 
makers 
employed 
2 years 
or more 



100.0 
101.3 
104.9 

115. o 



11 tool- 
makers 
employed 
4 years 
or more 



100.0 

IOI.2 
I06.3 
H5-8 

117. o 
117. 6 



9 tool- 
makers 
employed 
7 years 
or more 



IOO.O 
IOO.6 
IO5.9 

117. 6 
118. 2 
119. 

121. O 
121. O 
I25.O 



7 pattern 
makers 



IOO.O 
IO2.7 
IO5.6 

in. 7 
115. 



The toolmakers listed in the four columns are the same 
men except that column one contains all toolmakers who 
had worked six months or more, column two only such 
toolmakers as had been employed two years or more, 
column three only such as had been employed four years 
or more, etc. 

The figures show that the rise in wages is very slight 
during the first six months, that it is greater during the 
second six months, and that it is particularly rapid during 
the second year. To some extent, of course, the increases 
mean that the workman is being advanced to more diffi- 
cult and exacting work. To a great extent, however, the 
advances simply mean that workmen who were started 
at a slightly less rate than the rate paid to older employees 
doing the same work are advanced as they demonstrate 
their ability. Most of the advance in the first year is prob- 
ably due to this reason, and the lower rate paid the work- 
men during this period should be considered a credit to be 
deducted from the cost of breaking them in. This credit 
will amount to a large percentage of the total cost of 



n8 THE TURNOVER OF FACTORY LABOR 

breaking in men. We may take the 16 toolmakers who had 
worked 2 years or more as an example and assume that 
the wage which they received at the end of a year repre- 
sents the normal wage in the shop for experienced men 
at the particular kind of work. The difference between 
that rate and the rate actually paid them during their first 
year would be due to their inexperience and lesser pro- 
ficiency. We may assume that the average rate paid the 
men during the first year exceeded the starting rate by 
one-half the increase in the course of the year. This ob- 
viously is an over-estimate as the figures show the in- 
crease did not occur uniformly but mainly in the second 
six months. This would give an average rate of 102.45 
compared with the starting rate of 100.0. It is less than the 
rate assumed as the normal rate for experienced men by 
2.45 percent of the starting rate. If a man was started 
at 45 cents per hour and worked eight hours a day, twenty- 
four days a month for twelve months, his earnings would 
be $1036.80. Two and forty-five hundredths percent of 
this amount is $25.40. This is the amount which, accord- 
ing to hypothesis, should be deducted from the gross cost 
of breaking in a man, because of the fact that the inex- 
perienced man is paid a lower rate than the experienced. 
Even if this amount be cut in two or in three, its deduc- 
tion would make a substantial difference in the net cost 
of the turnover and cannot with accuracy be left out of 
consideration. 

It is a common practice for street railway companies 
to advance the wages of motormen and conductors one 
cent per hour at the end of each year of service. Thus a 
second year man receives one cent an hour more than a 
first year man, a third year man one cent an hour more 
than a second year man, etc. Two hundred and fifty work- 
ing days in the year at 8 hours per day gives 2,000 working 
hours per year. One cent per hour for 2,000 hours makes 



THE COST OF TURNOVER TO EMPLOYERS 119 

a difference of $20 per year in the annual earnings of 
workers of a year's difference in duration of service. If the 
breaking in period be considered as one year, $20 must 
be deducted from the breaking in cost of each man because 
of lower wages received by inexperienced men. 6 

A striking illustration of the expense of learning an 
operation being partially borne by the workman is furnished 
by the pressers and cutters in the New York garment 
trades. No systematic means of training these workers 
existed in the industry, and it was necessary for most 
workers to learn their trade "on the job." Ninety-five 
out of 100 pressers interviewed by the agents of the Bu- 
reau of Labor Statistics and 88 out of 100 cutters learned 
their trade in this manner. 7 It was customary for the 

6 In many cases the difference between the hourly wages of first 
and second year street railway trainmen is more than one cent. 
The following table showing the union wage rates of motormen 
and conductors in six large cities in September, 1915, shows that 
in many instances the difference is more than a cent per hour. The 
table is taken from the report of the Cleveland Education Survey, 
volume on Railroad and Street Transportation, by Mr. R. D. Flem- 
ing, p. 71. 



City 


Years of Service 




1 


2 


3 


4 


5 


6 


7 


8 


9 


10 


Boston 


26M-27 
29 

25-30 

23 

23 

21-22 

21 


28^ 

32 

32 

24 

25 

24 

23 


29 


29M 


30M 


32 










Cleveland 










Detroit 


















Buffalo (a) 

Buffalo(a) 


25 

263^ 

24 
24 


27 
28 
25 
25 


28 
29 
25 
26 


29 
30 
25 

27 


29 


29 


29 


30 


Cincinnati 

Indianapolis. . . . 


26 


26 


27 


28 













(a) Two divisions of the street railway union. 

'"Wages and Regularity of Employment in the Cloak and Suit 
and Skirt Industries," Bureau of Labor Statistics, Bulletin No. 147, 
P- 159. 



120 THE TURNOVER OF FACTORY LABOR 

workers to begin at the simplest operations, as piece 
pressers or canvas cutters, often working for a number 
of weeks without pay, or actually paying for the privilege 
of learning and then advancing to a small wage. Out of 
eleven pressers whose history is given in detail by the Bu- 
reau of Labor Statistics, four worked as learners without 
pay, two positively paid for the privilege of learning and 
two started at very low wages. Out of thirteen cutters 
whose detailed history was given, one worked without pay, 
three worked without pay and also paid to learn, five began 
at very small wages and one took private lessons to learn 
the trade. 8 

A third error in calculating the cost of the turnover 
consists in the treatment of overhead charges. The method 

9 Ibid., pp. 139-144. 

The details of some of these cases as stated by the Bureau are 
given below. They illustrate forcibly the contribution which the 
workman makes toward the expense of his own training. 

Presser No. 1. Learned the trade by working as a helper in a 
shop where he worked 6 weeks as a learner without wages. At end 
of first year was making $18 a week. 

Presser No. 3. Began as piece presser, working two weeks for 
nothing as a learner, then 3 weeks at $3, then a few weeks at $3.50, 
then a few months at $5, and by end of first year had worked up to 
$8 as an upper presser on skirts. 

Presser No. 4. Began as under presser, working 5 weeks at $4, 
then 2 years at $7. 

Presser No. 5. Began as piece presser, working 2 weeks for 
nothing, then 3 months at $3, then at $7. 

Presser No. 6. Worked 2 weeks at $5 per week, then several 
months at $8, then a year at $12. 

Presser No. 7. Began as reefer presser, worked 6 months at 
$8 per week, then at $10, and at end of first year was making $11. 

Presser No. 8. Began as under presser and piece presser, worked 
2 weeks for nothing, then 2 weeks for $3, then 3 months for $5, 
then for $8. At end of first year was making $10 as under 
presser. 

Presser No. 9. Began as skirt presser, paying $5 for the privi- 



THE COST OF TURNOVER TO EMPLOYERS 121 

employed in several instances has been to charge the in- 
experienced worker with a cost equal to the amount which, 
on account of his deficient production, the worker fails to 
contribute, to overhead charges. For example, if a charge 
equal to the piece rate price is made against each unit 
of product for overhead, and if, during his learning period, 
the worker fails to attain the normal piece rate earnings 
by $20, a charge of $20 for uncompensated overhead 
charges is made against him. 9 

lege of learning, and in addition working 2 weeks without pay, 
then a few weeks at $3 and a few weeks at $6, up to $11 at the 
end of the first year. 

Presser No. 10. Learned the trade as operator and presser in the 
Russian army, but, notwithstanding his previous experience, paid 
$10 to learn and worked 4 weeks without pay, then for $10 a week. 

Cutter No. 1. Began as a learner, making $5 to $8 the first year. 
Worked one year as a canvas cutter at $10. 

Cutter No. 3. Began as a learner at $4. Worked up to $11 in 6 
months. 

Cutter No. 5. Started at $6 per week, working up to $10 in 
5 years. 

Cutter No. 6. Paid $25 to learn and worked 4 weeks without 
pay; after that received $6 per week. In 2 years was making $14 
as trimming cutter. 

Cutter No. 7. Began as helper trimming and cloth cutter at $5 
to $9. In 11 years worked up to $24 as a cloth cutter. 

Cutter No. 8. Took private lessons from a cutter in latter's 
home. 

Cutter No. 10. Began at $3 per week as a helper trimming cut- 
ter. In a year was making $8 as assistant trimming cutter. 

Cutter No. 11. Paid $50 to learn and worked 2 months without 
pay. 

Cutter No. 12. Worked 6 weeks without pay, then 6 months at 
$3, then at $7. The next year earned from $10 to $14. 

Cutter No. 13. Worked 4 months at $5, then advanced to $10. 
Also attended a private designing and cutting school. 

9 Apparently this is the position of Mr. M. W. Alexander in his 
article on "Hiring and Firing : Its Economic Waste" in the Annals 
of the American Academy of Political and Social Science, v. LXV, 



122 THE TURNOVER OF FACTORY LABOR 

In so far as the turnover, by reducing the productivity 
of the equipment, makes necessary a greater investment 
in plant and equipment than would otherwise be required, 
it is clearly chargeable with the entire overhead charges 
on the additional investment in plant and equipment. As 
for the overhead charges upon the remaining investment 
in plant and equipment which is not rendered necessary by 
the turnover and for indirect labor cost, it is clearly errone- 
ous to charge the turnover with a portion of these costs in 
the ratio that it causes a deficiency in production, because 
the deficiency in production has no relation to these costs, 
These costs are totally independent of the turnover. A 
reduction in the turnover does not reduce them; an in- 
crease in the turnover rate does not increase them. 

To this it will be answered that although the turnover 
does not affect the total indirect costs, it does affect the 
indirect costs per unit of product, because by reducing 
production it compels the distribution of the total cost 
over fewer units of product and that, in so far as the 

May, 1916, on "Personnel and Employment Problems," pp. 138-139; 
American Industries, v. XVI, pp. 17-22. Mr. Alexander figures the 
loss due to reduced production by taking overhead charges as a 
given percentage of wages and by applying this percentage to the 
average deficiency in production during the learning period. 

This error is made also by Mr. Boyd Fisher with respect to indi- 
rect labor costs ("Determining Cost of Turnover of Labor," Annals 
of the American Academy of Political and Social Science, v. LXXI, 
May, 1917, on "Stabilizing Industrial Employment," p. 46). Mr. 
Fisher, in calculating the cost of reduced production, prices the 
deficiency in production, in case piece work is paid, at the cost 
of indirect labor, in case day work is paid at the cost of both 
indirect and direct labor. With respect to overhead due to inter- 
est, depreciation, insurance, etc., upon plant, Mr. Fisher does not 
fall into the above error, since he charges overhead against the 
turnover only for the excess plant required on account of the 
reduced production. Differences of opinion are possible concern- 
ing the method of ascertaining the charge of excess plant. 



THE COST OF TURNOVER TO EMPLOYERS 123 

turnover increases the unit costs, it is properly chargeable 
with an expense. This argument presupposes that due to 
the turnover the output of the plant is less than it would 
be were the turnover reduced. It presupposes that busi- 
ness is being lost because of inability of the firm to pro- 
duce enough to fill all orders. If as a matter of fact the 
enterprise is already producing all that it is able to sell, 
a reduction in the turnover would not lead to an increase 
in production. 

If, however, the enterprise is unable to produce the 
entire amount which is demanded, or if the reduction in 
the turnover would so reduce costs as to make possible 
a selling price which would create a demand for the in- 
creased output, the proper measure of the cost of the high 
turnover is not the excess unit cost caused by the turnover, 
but the profits upon the additional sales which the reduc- 
tion of turnover would make possible. 10 

10 To illustrate this point we may assume a plant with annual 
overhead expenses of $50,000 producing 100,000 units of product 
per annum. The overhead cost per unit of product is $.50. If we 
assume the deficiency in production due to the turnover of 25,000 
units of product per year, according to the method of charging 
overhead against the deficiency in production at the regular rate 
($.50 per unit), the cost of the turnover due to decreased production 
would be $12,500 per year. 

This, however, does not measure the actual loss due to decreased 
production. We may assume that the product sells for $1 per unit. 
The total profit when 100,000 units are sold over and above over- 
head is $50,000. If, due to the reduction of the turnover, 25,000 
additional units can be produced by the same plant, the profit over 
and above overhead would be $75,000, indicating a loss of $25,000 
per year, instead of $12,500 due to reduced production caused by 
the turnover. The amount would differ according to the selling 
price of the product. If the selling price were $2, the loss in profits 
due to the turnover would be $50,000, etc. 

In connection with the loss caused by the turnover due to its 
restriction of output, it should be noted that the turnover is likely 



124 THE TURNOVER OF FACTORY LABOR 

In ascertaining the excess investment in plant and equip- 
ment necessitated by the turnover, it must be observed that 
the deficiency in output of new men does not measure the 
excess investment in plant and equipment. 11 The reasons 
for this are : 

(a) There are many machines of which only one is 
required and which, because they perform fast and sim- 
ple operations, are operated only part time. The produc- 
tive deficiency of a new hand on these machines can be 
compensated by a longer period of operations. In other 
cases several of a given kind of a machine may be re- 
quired but it may be necessary to operate one of the number 
only part time. The deficient operation of an inexperienced 
hand on one of the full time machines can be compensated 
by operating the part time machine full time. 

(b) The reduction in output caused by the turnover may 
be too insignificant to warrant the installation of additional 
equipment. The deficiency when a new hand is being 
broken in can be met by overtime work of an experienced 
hand. 

(c) A reserve capacity may be required for emergencies, 
break-downs, etc. This reserve capacity may be sufficient 

to be greatest in times of prosperity, precisely when the productive 
capacity of many plants is being taxed to the limit. 

"Mr. Fisher apparently regards the deficiency in production of 
new men as measuring the excess investment required in plant 
and equipment, since he assumes that plant investment required 
under present conditions will bear the same ratio to the investment 
which would be needed were there no turnover as the production 
possible with the present equipment operated by all experienced 
men would bear to the present actual output. He states as axio- 
matic "that if the deficiency in production is 20 percent, the excess 
in plant investment is 20 percent." He leaves out of account the 
fact that a deficiency in the production of individual workmen does 
not mean a deficiency in the production of the plant as a whole. 
Op. cit., p. 49. 



THE COST OF TURNOVER TO EMPLOYERS 125 

to compensate for the decreased output during periods when 
new hands are being trained. 

(d) The fact that an excess investment in certain items 
of equipment may be necessitated by the turnover does 
not mean that a proportional increase in investment in 
the shop as a whole will be required. If, on account of 
the turnover, ten percent more machinery is required, 
the investment in buildings, elevators, shafting, cranes, etc., 
will not necessarily be ten percent greater. 

A factor of great importance in the cost of the turnover 
is the proportion of men hired who have had experience, 
either in the given plant or elsewhere, which renders them 
competent to perform the work for which they are hired 
with little instruction or practice. Unfortunately data are 
not available showing the proportion of men who are hired 
in different plants for work substantially similar to that 
which they have previously done. The only data avail- 
able are figures of the proportion of men hired who had 
previously worked in the same plant regardless of the 
nature of their former job. These data show that the pro- 
portion of rehirings to total hirings varies widely, ranging 
from slightly over 10 percent to over 50 percent. The 
proportion of rehirings tends to be large in establishments 
in which there are great seasonal fluctuations in the work 
and which let workers go only to take them back when 
the rush season commences, and in more or less isolated 
establishments which constitute the principal source of 
employment in a locality. 

The former Department of Commerce and Labor has 
published the figures on rehirings in a steel mill — an ex- 
ample of an industry characterized by great fluctuation 
within each year. 12 

" "Labor Conditions in the Iron and Steel Industry," v. Ill, p. 381, 
62nd Congress, 1st Session, Senate Document, No. no. The data 
are given in Table XXV. 



126 THE TURNOVER OF FACTORY LABOR 



TABLE XXVII 

RELATION OF MEN REHIRED WITHIN A YEAR OF LEAVING TO ALL MEN 
LEAVING AND TO ALL MEN HIRED IN A STEEL MILL 



Year 


Total 

number of 

employees 

leaving 


Employees 

hired during 

the year 


Employees 
leaving but 

returning 
within 

the year 


Percent 

of all 

employees 

leaving who 

returned 

within 

the year 


Percent of 
all employees 

hired who 
were rehired 
within a year 

of leaving 


I905 
1906 
1907 
1908 
1909 
1910 


16,533 
19,642 
21,259 
10,841 

15,549 
20,509 


20,672 
20,Il6 

18,394 
II,I03 

18,954 
19,178 


6,649 

6,733 
6,689 

6,934 
8,162 

6,i35 


4O.2 

34-3 
3i-4 
63 -9 
52.5 
29.9 


32.1 

33-5 
36.3 
62.4 

43- 1 
32.0 



These figures do not, of course, show the entire extent 
of rehiring in this plant since they give separately only 
those men rehired within the calendar year. Note how 
the number of men who returned within the year increased 
in the years 1908 and 1909, although the total number of 
men leaving in those years was smaller than in any other 
year. On account of the depression and scarcity of jobs, 
men were glad to return to their old jobs if opportunity 
offered. As men resigned or were discharged, the man- 
agement rehired men who had been laid off on account 
of the depression. The number of rehirings is particularly 
great in 1909 because in the latter part of that year the 
steel business became brisk, the force was increased to 
normal size, and men laid off were taken back. An in- 
crease of 3,266 took place in the force in this year. 

Another example of a large number of rehirings during 
and immediately following a depression is furnished by 
a Chicago metal working plant. In 1908 this plant hired 
1,555 men, 648 of whom, or 41.7 percent, were rehired. 
Of these 648, 376 were men who had been laid off on 
account of the depression beginning late in 1907 and who 



THE COST OF TURNOVER TO EMPLOYERS 127 

were taken on in preference to new men as vacancies oc- 
curred. In the early months of 1908 the establishment 
was also gradually increasing its force to normal and a 
steady increase from 2,769 on January 28th, to 3,151 on 
June 16th, occurred. 

In 1909 this plant rehired 335, or 14.5 per cent., out of 
a total of 2,312 hired. Fifty-one of these were men pre- 
viously laid off. In 1910 this firm rehired 378 men out 
of a total of 2,599 hired — again a percentage of 14.5 per- 
cent. In this year 104 men hired were men who had re- 
cently been laid off. 

A mail order house with a business subject to sharp 
fluctuations found that of 8,841 workers hired in 1914, 
2,991, or 33.8 percent, had been previously employed by it. 

An Illinois manufacturer of agricultural implements with 
a very marked seasonal fluctuation in his business found 
that 670, or 32.7 percent, out of 2,046 workers hired in 
1911-1912, had previously been in his employ. Of the 
670 rehired in 1911-1912, 250, or 37.3 percent, had been 
away for less and 420, or 62.y percent, for more than a 
year. Of the 479 rehired in 1915, 199, or 41.5 percent, had 
been away less than a year and 280, or 58.5 percent, more 
than a year. This plant follows a definite policy of let- 
ting men laid off know that their return is desired and that 
they will be given preference if of good record. 

Miss Allinson, in her study of the women in the dress- 
making industry, gives the figures shown on page 128 con- 
cerning the proportion of workers who returned in the fall 
after the summer suspension of business. 13 

In shop B, Miss Allinson states that 50 percent of a 
force of 96 in' 1910-1911 returned for work the following 
year. In shop D, 40 percent of 55 workers on the payroll 
in 1908- 1909 returned to work in the following year, 49 

13 May Allinson, "Dressmaking as a Trade for Women," Bureau 
of Labor Statistics, Bulletin No. 193, p. 105. 



i28 THE TURNOVER OF FACTORY LABOR 



Shop 


Total employed in 


Percent returning in 


spring season of ion 


fall season of 191 1 


A 


6 9 


32 


D 


44 


39 


G 


33 


49 


H 


23 


78 


K 


11 


72 


L 


8 


75 


M 


4 


75 



percent of 65 employed in 1909-1910 returned to work 
in the next year. In shop F, 38 percent of a force of 
58 employed in 1908 returned in the following year. The 
entire force of 1909 returned in 1910. 

An old established eastern silk mill which was prac- 
tically the only industry in the small town in which it was 
located (although there were other towns in the vicinity) 
found that out of 10,007 workers hired from 1908 to 191 5 
inclusive, 4,629, or 46.3 percent, had previously been in its 
employ. The details by years are as follows: 



Year 


Total hired 


Number rehired 


Percent rehired 


1908 


520 


191 


36.8 


1909 


1,129 


512 


45-3 


I9IO 


1,193 


525 


44 


I9II 


I,l68 


549 


47.0 


1912 


983 


424 


43-2 


1913 


1,630 


681 


41.8 


1914 


1,260 


59i 


46.9 


1915 


2,124 


1,156 


54-4 


All years . . 


10,007 


4,629 


46.3 



With the exception of 1908, a year of depression when 
the proportion of rehiring was low, and 191 1, a year of 
fair business when the proportion was high, these figures 
appear to follow the rule that the proportion of rehirings 
tends to increase in years of depression and to decrease 
in years of prosperity. In 1909, 1914, and 191 5, poor 



THE COST OF TURNOVER TO EMPLOYERS 129 

business years on the whole, the proportion of rehirings 
was high, while on the other hand, in 1910, 1912, and 1913, 
years of good business, they were low. 

Among establishments not experiencing great seasonal 
fluctuations in business or not more or less isolated from 
other industries in location, the proportion of rehirings is 
very much less than in the above establishments. A Chi- 
cago metal working plant which hired 548 men in 19 16 
found that j6, or 13.9 percent, had been in its employ 
previously. Another large Chicago metal working plant 
found that one-sixth of the workers hired by it in 1916 
had worked there previously. A telephone company which 
hired 330 one month of 1917 found that 48, or 14.5 per- 
cent, had previously been in its employ. On account of 
the great scarcity of help in the years to which these 
three instances relate, the figures are probably abnormally 
low. 

An eastern street railway company found that of 1,443 
conductors and motormen hired during 191 5, 193, or 13.4 
percent, had been previously employed by it. There was 
a marked difference in the proportion between the motor- 
men and conductors. Of 358 motormen hired, 94, or 26.2 
percent, had been previously employed by the company, 
compared with 99, or 9.1 percent, of 1,085 conductors. 

In the recent arbitration of the wages on the Bay State 
Street Railway, it was stated that in the previous 3 years 
14.3 percent of all employees resigning returned to service. 14 
The total proportion of rehired employees would exceed 
this amount as the figure refers simply to the proportion 
of men resigning within the three year period who were 
rehired within the same period. 

Sixty-six, or 11.2 percent, of 589 applicants for em- 
ployment as trainmen with the Cleveland Street Railway 

14 Testimony of Professor A. S. Richey, Electric Railway Journal, 
v. XLV, p. 709. 



i 3 o THE TURNOVER OF FACTORY LABOR 

Company in 191 5, had had previous electric railway ex- 
perience, but in what capacity was not stated. 15 

Among 476 men selected at random from the payroll 
of a Milwaukee metal working plant in 19 13 and well dis- 
tributed among all departments, the writer found that 137, 
or 28.8 percent, had been employed there previously. 
The proportion of rehirings to hirings to maintain this pro- 
portion on the payroll would of course be much below 
28.8 percent. 

To what extent the establishments studied by Mr. Alex- 
ander were affected by seasonal fluctuations is not known. 
He found that 11,580, or 27.2 percent, of 42,571 hired, 
had previously been employed in the establishment. 16 

The effect of the varying experience of new workers 
upon the breaking in cost is taken into account, as pointed 
out above, by taking the average breaking in cost of a 
number of workers hired for each operation or group 
of similar operations. 

3. Estimates and data on cost of breaking in men. 

Satisfactory estimates or studies of the cost of breaking 
in men are very scarce. Mr. M. W. Alexander made the 
estimates of the cost of breaking in various classes of 
employees in metal working industries 17 shown in 
Table XXVIII. 

Mr. Alexander does not indicate the nature of the data 
on which his figures are based. Apparently in the case 

16 Cleveland Education Survey, Railroad and Street Transporta- 
tion, p. 65, by R. D. Fleming. 

""Hiring and Firing: Its Economic Waste," Proceedings of the 
National Machine Tool Builders' Association, 1913, p. 97 ; Annals 
of American Academy of Political and Social Science, v. LXV, 
May, 1916, on "Personnel and Employment Problems," p. 136. 

17 "Hiring and Firing : Its Economic Waste," Proceedings of the 
National Machine Tool Builders' Association, 1914, pp. 98, 99; An- 
nals of Amer. Acad, of Political and Social Science, v. LXV, May, 
1916, on "Personnel and Employment Problems," p. 136. 



THE COST OF TURNOVER TO EMPLOYERS 131 



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132 THE TURNOVER OF FACTORY LABOR 

of some items he is making rather rough estimates. In 
regard to the cost of hiring he simply says, after enumer- 
ating some of the factors of cost, "an expense of fifty 
cents for each employee should be a fair estimate." 18 In- 
struction expense, he says, "may be assumed to be for each 
new employee in group A, . . . etc." 19 Any estimate of 
excess wear and tear on machinery he admits "must be 
a mere guess, but it may be conservative to assign ten 
dollars for each group A, B, and C employee." 20 
Loss due to reduced production "may be assumed to amount 
to . . . etc.," 21 and expense due to spoiled work "may 
be assumed to be . . . etc." 22 In regard to the cost 
of breaking in rehired employees he says, "making, how- 
ever, a conservative assumption, the cost of hiring and train- 
ing old employees may be placed at . . . etc." 23 

Mr. W. A. Grieves of the Jeffrey Manufacturing Com- 
pany says that careful studies by the Rate Department 
indicate that the cost of breaking in men in his company 
averages about $81.10 per man. 24 Mr. Grieves has 
since written the writer, however, that $100 is probably 
nearer the average. What the average cost is depends of 
course upon the character of the men who are being hired, 
and, in the writer's opinion, $100 is an over-estimate for 
most factories in which, as shown in Chapter IV, the new 
men hired are preponderantly for unskilled work. 

Mr. P. J. Reilly of the Dennison Manufacturing Com- 
pany estimates that the expense of replacing experienced 

18 Annals of the American Academy of Political and Social 
Science, v. LXV, p. 138. 

19 Ibid., p. 138. Italics are mine. 

20 Ibid., p. 138. Italics are mine. 

21 Ibid., p. 139. Italics are mine. 

22 Ibid., p. 139. Italics are mine. 

23 Ibid., p. 139. Italics are mine. 

24 "The Handling of Men." Address delivered before Executives' 
Club, Detroit Board of Commerce, Dec. 22, 1914. Privately printed. 



THE COST OF TURNOVER TO EMPLOYERS 133 

hands in their industry (tags and paper novelties) "av- 
erages" $50. 25 The employment manager of a man- 
ufacturer of valves and fittings tells me that $25 is a "fair 
estimate" of the cost of breaking in semi-skilled piece work- 
ers in his establishment. 

Mr. R. B. Stearns, vice-president of the Milwaukee 
Light and Electric Railway Company, made a study of 
the average annual cost properly chargeable to 433 train- 
men, one year or less, for practice money, instruction, ac- 
cidents, and damage to equipment. He found the average 
cost by trainmen in service one year or less was $370.43. 
This was $217.29 more than the average per trainman for 
the same items among the trainmen in service more than 
one year, which indicates that the cost of breaking in train- 
men averages not less than $217.29 per man. 26 

Although few accurate data exist in regard to the entire 
cost of breaking in new men, accurate information in re- 
gard to certain items of cost is obtainable in some instances 
and indicates that the cost of breaking in new men is 
surprisingly large. 27 

25 Annals of the American Academy of Political and Social Sci- 
ence, v. LXV, May, 1916, on "Personnel and Employment Prob- 
lems," p. 93. 

26 Dr. Chas. H. Lemon: "Specifications for Railway Employes," 
Area, v. V, p. 869. 

27 A high cost of breaking in men is of course not necessarily an 
unfavorable sign. The cost of breaking in men is likely to be high 
in plants with efficient training departments, (1) because of the 
great expense of maintaining an elaborate training department and 
of giving close intensive supervision to new workers, (2) because, 
if the deficiency below the standard output, excess spoilage, etc., 
are considered part of the cost of breaking in men, these items are 
likely to be high when there is an efficient training department. An 
efficient training department results in the setting of high standards 
of the normal performance. The higher the standard of perform- 
ance, the greater is the deficiency below it during the training period 
and the longer the training period. 



134 THE TURNOVER OF FACTORY LABOR 

The employment manager of a Chicago clothing firm says 
that the amount actually lost in paying day wages in excess 
of piece rate earnings (with the exception of a few simple 
operations) ranges from $20 to $75. 

Mr. John M. Williams, of Fayette R. Plumb, Inc., has 
published interesting figures concerning the cost of day 
wages in excess of piece rate earnings which the firm pays 
until the workmen in a certain operation become proficient. 28 

The nature of the operation is not stated, but it is said 
to be a semi-skilled operation in which an average man 
becomes proficient in 12 weeks and self-supporting in 6. 
During the first week he is paid 30 cents per hour flat, 
in the second 20 cents per hour and piece earnings for 
what he produces, in the third week 15 cents per hour 
plus piece earnings, in the fourth 12 cents per hour and 
piece earnings, in the fifth 8 cents per hour and piece earn- 
ings, and in the sixth 5 cents per hour and piece earnings. 
On a basis of a 52^ hour week, the week at this shop, 
the day rate payments in the course of six weeks would 
amount to $47.25. From this must be deducted the amount 
of work produced in the first week for which the regular 
piece work rates are not paid. Crediting the man with 
this amount leaves the amount of day wages paid in excess 
of the amount paid at the regular piece work rates for all 
work produced, which, in the case of an average man, Mr. 
Williams says, amounts to about $42.00. 

Girls learning to become telephone operators attend an 
operators* school for four weeks before attempting actual 
operating. During this period they were paid, in 1917, 
by a middle western company $7 per week, a clear loss 
to the company of $28. The highest wage paid to opera- 

28 "An Actual Account of What We Have Done to Reduce Our 
Labor Turnover," Annals of American Academy of Political and 
Social Science, v. LXXI, May, 191 7, on "Stabilizing Industrial 
Employment." 



THE COST OF TURNOVER TO EMPLOYERS 135 

tors by this company (with the exception of a differential 
of $1.50 to $2 added to every rate on the scale for evening 
or night work) is $13.50 per week. The traffic superin- 
tendent states that at the end of six months the average 
operator has attained only about half the speed which is 
regarded as standard. The new operator nevertheless is 
started at actual work at the beginning of the second month 
at $8 per week — considerably more than half the maximum 
wage. At the end of two months she receives $8.50, at 
the end of three months $9, at the end of four months $9.50, 
and at the beginning of the sixth month $10. Throughout 
this entire period she is receiving a wage much greater 
in proportion to the wage of the highest paid operators 
than her efficiency is to the standard efficiency. 

The great variation in the length of time required to 
attain the normal output at different kinds of work is 
illustrated by the following studies made in a plant manu- 
facturing electrical appliances. To indicate the time re- 
quired to learn each job, one man who was distinctly above 
the average in ability was taken for each operation. His 
record of production was looked up, and it was ascer- 
tained how long he required to attain the output regarded 
as normal for an average good man. 

In assembling a flat iron, a relatively simple operation, 
with no intricate details to learn and requiring practice 
and dexterity rather than knowledge, the normal output 
was attained on the thirteenth day. The percent of the 
normal attained on the previous days was as follows: 

1st day 36 percent 

2nd day 40 " 

3rd day 56 " 

4th day 63 " 

5th day 66 " 

6th day 73 " 

7th day 80 " 

8th day 83 " 



136 THE TURNOVER OF FACTORY LABOR 

gth day 86 percent 

ioth day 90 " 

1 ith day 93 " 

The assembling of electric stoves is a much more com- 
plicated operation. The article is more intricate and the 
operation requires not only more mechanical ability but 
also more intelligence and knowledge. It was impossible 
to ascertain the efficiency of men in this operation day by 
day. The assembling of three stoves was considered a 
good day's work. A new man might finish one stove and 
be far advanced on a second, but there was no way of 
telling precisely how far the second stove was completed. 
It was therefore necessary to take the number of stoves 
finished during longer periods. 

The time required for the operative to reach the nor- 
mal output of three stoves per day was 19 weeks. Dur- 
ing the first two weeks he was approximately 33.3 per- 
cent efficient, during the second two, approximately 50 
percent, during the second four, approximately 66.7 per- 
cent, during the next three, 80 percent, and during the last 
five weeks 90 percent. 

An operative assembling an electric heater starting with 
50 percent efficiency required ten days to reach the nor- 
mal output. During that period his average efficiency was 
75 percent. 

A girl preparing and assembling the cord used on elec- 
trical appliances took 25 days to attain normal output. 
Her efficiency at the start and throughout the learning 
period was much greater than in the cases of the other 
operatives. By days it was: 

First 3 days 83 . 3 percent 

Second 3 days 87.5 " 

7th day 90 . o " 

8th day 83.3 " 



THE COST OF TURNOVER TO EMPLOYERS 137 

5~days 87.5 percent 

3 days 91.7 

1 7th day 96 . o 

18th day 93 . o 

19th day 91.7 

20th day 96 . 7 

21st day 97.0 

22nd day 93 . o 

23rd and 24th days 91.7 

25th day 96 . o 

The excessive frequency of accidents among new men has 
been neglected in studies of the cost of the turnover. It 
is important not only because of the loss which it itself 
represents, but because it is an indication of the excess 
spoilage and excess wear and tear on machinery caused 
by the new man. In the absence of spoilage records and 
records of repairs to machinery, the accident record is the 
best index of the relative amounts of spoilage and break- 
age caused by new and experienced workmen, for the same 
lack of dexterity and knowledge of his apparatus and ma- 
terials and of how to do the work, which causes the work- 
man to injure himself, also causes him to injure his ma- 
terials, tools, and machinery. 

The Public Service Railway of New Jersey found that 
in the year 191 1, 34.5 percent of their motormen and 
conductors had been in their employ for less than a year 
and that these were responsible for 61 percent of 
their accidents. The average cost per man of accident set- 
tlements, -exclusive of the cost of maintaining the claim 
department, according to duration of employment in 191 1 
was : 29 

First year men $202 . 98 

Second year men 135-57 

Third year men 83 . 23 

Fourth year men 47-35 

29 Electric Railway Journal, v. XL, p. 820. 



138 THE TURNOVER OF FACTORY LABOR 



co 

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w w 

o 
g 

w 

& 

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Q 



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il 
s 

w 

& 
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o 



Percent of accidents 
per ioo trainmen of 
less than 6 months' 
employment to num- 
ber per ioo for 
all trainmen 


too t^ 


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vo vo 10 Tt- 000 t^ O 

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Tt^iOcOTrrl-Ttco 


Accidents per ioo 
men, trainmen em- 
ployed less than 
6 months 


m« io 


MO rfO O ^ »oco 


t^.vo <o 

VO VO CO 


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t>. i>»CO to Ov On t^vo 


Percent of all 
accidents experienced 
by trainmen 
in service less 
than 6 months 


vO O O 

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1913 

October .... 
November. . 
December. . . 


1914 

January 

February . . . 

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April 

May 

June 

July 

August 



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THE COST OF TURNOVER TO EMPLOYERS 139 

Mr. P. T. Reilly, superintendent of transportation of the 
Scranton Railway Company, found that the average cost 
of damage per trainman according to the duration of ser- 
vice during a period of six years was as follows : 31 

First year men $236 . 81 

Second year men 146 . 6$ 

Third year men 100 . 61 

Fourth year men 95 . 00 

Four years and over 48 . 87 

Mr. George Lawson has published the data given in 
Table XXIX on the accident frequency among all train- 
men and those employed less than six months upon the 
New York Street Railways, Rochester Lines. 

Mr. W. J. Sherwood, superintendent of transportation 
of the Mobile Light and Railroad Company, found that 
in 1913, although only 43.6 percent of the trainmen had 
served less than a year, they were responsible for 57.25 per- 
cent of the expenditure for settlements, and that in 1914 
although only 37.3 percent of the trainmen had served 
less than a year, they were responsible for 75.73 percent 
of the expenditure. 32 Mr. Sherwood also calculated 
the average cost of settlements per car-hour per man. The 
results show an almost uniform decline in costs as dura- 
tion of service increases. The figures in detail are given 
in Table XXX. 

In the Bay State Street Railway wage arbitration, the 
company presented data showing the number of reprimands 
and the number of accidents annually among trainmen, 
according to duration of service. 33 

31 Electric Railway Journal, v. XLIII, p. 1083. 

83 Ibid., XLV, p. 912. 

"Testimony of Professor A. A. Richey, reported in Electric 
Railway Journal, v. XLV, p. 709. The figures given here are taken 
from a chart published in the Electric Railway Journal. As it was 
impossible to read the chart with absolute accuracy, there are 



140 THE TURNOVER OF FACTORY LABOR 



Year of service 


Average number of 

reprimands per 
trainman per year 


Average"number of 

accidents per 
trainman per year 


I 
2 


3-i 
2.65 


1. 55 

0.83 


3 
4 


2.03 
1.8 


0.87 
0.82 


5 
6 


1-3 

0.8 


0.65 
o.55 


7 
8 


i-3 

1.0 


0.90 
0.67 


9 


0.9S 


0.50 


IO 


0.7 


o.55 



TABLE XXX 

COST OF ACCIDENT SETTLEMENTS PER TRAINMAN ACCORDING TO 
DURATION OF EMPLOYMENT, MOBILE LIGHT AND RAIL- 
ROAD COMPANY, 1 913 AND 1914 34 







Percent of cost of 


Average cost of 




Percent of all 


settlement attrib- 


settlements per 

car-hour per man 

according to 

duration of 

employment of 

trainmen 




trainmen employed 


utable to work- 


Period 

of 

employment 


for respective 
periods 


men according to 
duration of 
employment 




1013 


1014 


1913 


1014 


1913 


1914 


Less than 1 yr. 


43-6 


37-3 


57-25 


75-73 


$0.0447 


$0 . 0446 


1 to 2 years. . . 


16.0 


17.6 


29.18 


15. 11 


O.0621 


O.O189 


2 to 3 years. . . 


11 .1 


12.8 


3-74 


0.48 


O.OII4 


O . OO083 


3 to 4 years. . . 


8.0 


9-5 


4.26 


1.89 


O.OI39 


O.OO433 


4 to 5 years. . . 


4.1 


4-7 


1.67 


0.15 


O.OI39 


O.OOO71 


5 yrs. and over 


17.2 


18. 1 


3 90 


6.64 


O.OO77 


O.O081 


Total 


100. 


100. 


100. 


100. 













4. The turnover as a symptom of other costs. 

Although the turnover is important as giving rise to 
a large cost to the employer, its prime significance is not 
as a cost in itself, but as a symptom of conditions which 

undoubtedly errors in the hundredths figures, but the errors are too 
small to be significant. 
34 Electric Railway Journal, v. XLV, p. 912. 



THE COST OF TURNOVER TO EMPLOYERS 141 

are sources of loss to the employer. The conditions which 
cause large turnovers cause other losses even more im- 
portant than those incident to the turnover. Unsystematic 
hiring of men resulting in a poor selection causes large 
turnovers. It also results in the hiring of men of a poor 
grade and poorly adapted to the work, creating a less 
efficient force. The loss due to the lower efficiency of 
the force is probably more important than the loss due to 
the necessity of breaking in more new hands. Inadequate 
methods of teaching new men are important as a cause of the 
turnover but they are more important as a cause for low 
efficiency in the force as a whole. Foremen who do not 
understand how to handle men, bad physical conditions 
of work, mistaken wage policies, lack of opportunities for 
promotion, etc., all are important as causes of the turn- 
over. They are more important, however, because they 
repel desirable men from seeking employment in the shop 
and because they reduce the efficiency of the men employed. 
It is evident from this that the amount of money which 
can be profitably spent in removing the causes of the turn- 
over is not necessarily limited by the cost of the turnover 
itself. It is limited by the cost of the turnover and all 
the other costs caused by the conditions responsible for 
the turnover. The amount that can be profitably spent 
upon an employment department is not simply the saving 
resulting from the greater stability of the force, but also 
the general increase in the efficiency due to selection of 
higher grade workmen better adapted to their specific jobs. 
The expenditure justifiable for an instruction department, 
for improvements in physical conditions in the plant, for 
higher wages, etc., is determined by the benefit resulting 
from the increased efficiency of the force as well as the 
saving in turnover costs. 



CHAPTER VII 

THE COST OF THE TURNOVER TO THE WORKMEN 

i. The factors in the cost to workmen. 
The cost of the turnover to workmen consists of the fol- 
lowing principal items: 

1. Loss of earnings during unemployment before ob- 
taining a new position. 

2. Expense and difficulty of obtaining a new job. 

3. Deficiency in earnings while learning new job. This 
deficiency may be permanent. Older men especially find 
difficulty in obtaining work at which they can earn what 
they previously earned, even though their capacity may war- 
rant continuation of their previous earnings. 

4. Greater exposure to accident- while learning new job. 

5. Cost of moving if the new job necessitates the work- 
man's moving his family to another section of the city 
or to a new locality. 

6. Impairment of the development of his skill in his oc- 
cupation by the interruption of employment and by the 
necessity of accepting work in other lines which do not give 
him experience of value in his regular occupation. 

7. Demoralization from idleness or constant shifting, 
leading to discouragement, to loss of ambition, and often 
to dissipation, or to the development of the habits of float- 
ing and to an aversion to continuous employment. 

Statistical evidence bearing on these items of cost is 
sadly lacking. A great service would be done by a study 
covering several thousand terminations of employment, 
showing the expense and difficulty of obtaining a new 

142 



THE COST OF TURNOVER TO WORKMEN 143 

position, the number of jobs applied for, the miles trav- 
eled and the lapse of time before a new position was ob- 
tained, the nature of work in the new position and its 
relation to the worker's previous experience, the earnings 
of the worker at the new position compared with those in 
the former position, the deficiency, if any, in his earnings 
during the learning period, the proportion of cases in which 
the new position proved unsatisfactory to the worker 
or the worker to the new employer and the reasons in each 
case, information similar to such as was obtained concern- 
ing the first position for all positions until a permanent 
one was obtained, the injuries to workmen while learn- 
ing new jobs, what moving, if any, was involved on account 
of the different location of the new jobs and the expense, 
the effect of unemployment upon the worker's family, the 
means of tiding over the period of unemployment and low 
earning, inroads made upon savings, necessity of members 
of the worker's family taking work, of children leaving 
school, of family taking boarders, etc. Such data collected 
for several thousand terminations of employment occurring 
in a period when jobs were neither extremely plentiful 
nor extremely scarce would do much to awaken us to 
the serious effects upon workmen of the present almost 
disorganized state of the labor market, of the lack of effi- 
cient methods in selecting men and of adequate methods 
for training them, and to the great injury caused by unat- 
tractive jobs which constitute such a large proportion of 
the jobs in the market for men, and which are unattractive 
not because of inevitable characteristics of the work, but on 
account of such causes as piece rates cut to below a fair 
level or the neglect to mitigate fatigue or to protect the 
workers against heat, dust, fumes, etc. Such data would 
be a tremendous argument to employers to cooperate to 
make the public employment bureaus sources of general 



144 THE TURNOVER OF FACTORY LABOR 

information concerning all jobs in the market in the com- 
munity, to develop more careful methods of selecting and 
especially of training men, and to mitigate in so far as 
possible the onerous conditions of jobs which, on account 
of their severity, are constantly throwing men back into 
the labor market, discouraged and usually little or no 
better off financially. 

2. Unemployment before obtaining a new position. 

The period of unemployment elapsing before another 
job is obtained varies greatly with the year, the trade, and 
the occupation of the worker. Extended unemployment 
is less likely to follow resignations than discharges or lay- 
offs because men do not resign when jobs are scarce unless 
they have a fairly definite prospect of a new job. The 
period of unemployment is especially likely to be long in 
the case of lay-offs because they often occur more or less 
simultaneously throughout a given industry. 

The Bureau of Labor found in its study of unemploy- 
ment in 1 90 1 that inability to obtain work was the most 
important cause of unemployment. Among 24,402 family 
heads selected to represent workingmen in general, the Bu- 
reau found that 4,208, or 17.2 per cent., suffered 46,517 
weeks of unemployment due to inability to obtain work. 
Only periods of unemployment of a week or more were 
counted. In 1,403 or one-third of the cases the period of 
unemployment was 13 weeks or more, in 2,850 or over 
two-thirds of the cases it was 8 weeks or more. The 
average period of unemployment due to inability to obtain 
work was 11.03 weeks. The number of weeks of unem- 
ployment due to inability to obtain work, per worker, for 
the entire group of 24,402 was 1.91 weeks. The workers 
suffering unemployment on account of inability to obtain 
work constituted 34.6 percent of all workers suffering 
unemployment, and the unemployment brought about by this 



THE COST OF TURNOVER TO WORKMEN 145 

cause constituted 40.55 percent of all unemployment ex- 
perienced by the group of 24,402 workmen. 1 

An interesting study of unemployment due to inability 
to obtain work is contained in the investigation of the 
Bureau of Labor Statistics of unemployment among wo- 
men in Boston retail stores. The study covered the year 
ending July 31, 1914, a period in general of somewhat more 
unemployment than usual. 

Among 1,156 women and girls who were regular em- 
ployees in fifteen Boston retail stores, the Bureau found 
during the year ending July 31, 1914, 1152.75 weeks of 
unemployment due to inability to obtain work out of 
57,469 5-12 possible weeks of employment. This is ap- 
proximately one week per worker. 2 

Unemployment due to inability to obtain work was ex- 
perienced by 178 workers, or 15.4 percent of the entire 
group, and the average time lost by those unemployed for 
this reason was 6.5 weeks. 3 

Unemployment due to inability to obtain work was the 

1 18th Annual Report of the Commissioner of Labor, p. 290. 

3 "Unemployment Among Women in Department and Other Re- 
tail Stores of Boston," U. S. Bureau of Labor Statistics, Bulletin 
No. 182, pp. 67-68. 

The period of possible employment per worker was not 52 weeks 
because some workers did not enter industry until after the begin- 
ning of the year, while others ceased to be wage earners before the 
end of the year. In order to ascertain the period of possible em- 
ployment, it was necessary to deduct the time before and after the 
workers entered industry. 

These figures slightly overstate the proportion of time without a 
job among regular workers, for employees who had lost less than 
six days per year were excluded from the inquiry. These consti- 
tuted 10.9 percent of all the women working as regulars or as 
regulars and extras, but it is not stated what proportion they con- 
stituted of those working as regulars only. (See Bulletin No. 182, 
p. 11.) 

8 Ibid., p. 68. 



146 THE TURNOVER OF FACTORY LABOR 

third most important cause of unemployment experienced 
by them. 4 Forty-one and seven-tenths percent of the time 
in which these workers were without a job was due to 
inability to procure work. 5 

In what proportion of terminations of employment, un- 
employment due to inability to obtain work resulted, is 
impossible to say because the number of terminations of 
employment occurring among this group of workers is 
not exactly known. Nine hundred and sixty-six, or 83.6 
percent of the group, worked only in one retail store dur- 
ing the year. One hundred and ninety, or 16.5 percent, 
held 425 positions, indicating at least 235 changes. 6 
This does not indicate the total number of terminations, 
however, for some workers who had given up their po- 
sitions in the previous year may have been without work 
at the beginning of the year and suffered unemploy- 
ment due to inability to obtain work until they procured 
the first position held during the year. Others may have 
given up their positions before the end of the year without 
obtaining another position. Neither of these classes of 
changes is indicated by comparing the number of positions 
held with the number of individuals. It is not probable, 
however, that the number of terminations of employment 
exceeded the 235 known instances by more than one hun- 
dred and it is probably a conservative estimate that in at 
least half of the terminations, unemployment due to inability 
to obtain work resulted. 7 

Ibid., Table 5, p. 20. 

6 Ibid., Table 4, p. 16. Unemployment was divided into two 
classes: due to worker being without a job; due to worker, although 
having a job, being unable to work. 

6 Ibid., Table 2, p. 13, and Table 7, p. 23. Twenty-two termina- 
tions occurred because the worker retired from industry, but these 
of course do not concern us (p. 16). 

T Since 178 workers experienced unemployment due to this cause. 



THE COST OF TURNOVER TO WORKMEN 147 

Inability to procure work varied greatly among the dif- 
ferent classes of workers. It was most important among 
the youngest, least skilled, and least experienced workers, 
such as cashiers, examiners, and stock girls, and among 
workroom employees (millinery, alteration, etc., workers) 
because of the highly seasonal nature of their work. The 
prevalency of unemployment due to inability to procure 
work among the different classes of workers is indicated 
in Table XXXI. 

The most striking feature of this table is the large pro- 
portion of the w T orkroom employees, stock girls, cashiers, 
examiners, and wrappers who report unemployment due 
to inability to procure work and the long average duration 
of the periods of unemployment suffered by these workers 
due to this cause. 

The above, being a select group who did regular work 
only, shows an unusually low rate of unemployment due 
to inability to obtain work. Among a group of 346 who 
were employed as regulars and extras in stores, unemploy- 
ment due to inability to obtain work was much more preva- 
lent. In a total of 47.0 weeks of possible employment per 
individual, inability to obtain work caused an average of 
12.8 weeks of unemployment per individual or a loss of 27.2 
percent of the time of possible employment. It was by 
far the most important cause of unemployment, accounting 
for 75.9 percent of the total average unemployment suf- 
fered per individual. 8 The proportion of all workers 
who were unemployed for this reason is not given. The 
amount of shifting from position to position in this group 
was much greater than among the workers having regular 
employment only. Two hundred and fifteen, or 62.1 per- 
cent of the total number, worked in more than one retail 
store. The number of known positions held in industries 
other than retailing was 263, and the number of positions 

* Ibid., Table 48, p. 68, Table 12, p. 29, and Tables 5 and 6, p. 20. 



148 THE TURNOVER OF FACTORY LABOR 



X 
X 
X 

pq 

2 



Q 
5Z5 

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VO P 
io U 

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gs 

O 73 

3 3 

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« 03 

s < 

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03 

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^ 2 

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§ 

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p 



Percent of 
all unem- 
ployment 

due to 

inability to 

obtain 

work 


M M o e» O t>-00 

On O H M to O »0 

HI M M rj- W Tf w 


Average dura- 
tion of unem- 
ployment due 
to inability to 
procure work 
in weeks per 
worker unem- 
ployed for 
this cause 


H IOVO VO VO ^O *o 
t^ iO tJ- co io O vO 

M M M 


Weeks 
of unem- 
ployment 
due to 
inability 
to procure 
work per 
individual 


«00O fO Ov O Ov 
OO CON rf co Ov 

<N « H « 


Weeks 
of unem- 
ployment 
due to 
inability 
to procure 
work 


l>»VO CO <N W)IOts 
• • • • CN t>» • 
co Ov O CO • • « 
io O vo vo t» co *o 
H Tf N00 M 
«> m 


Percent of 
all workers 
in respective 
occupations 
reporting un- 
employment 
due to in- 
ability to 
obtain work 


co toco O O O^l 1 

H N NO f» W »0 
H M <N <N (N M 


Number 
reporting 
unemploy- 
ment due 
to inability 
to obtain 
work 


On xo co V) CO 00 CO 

C^ M VO *>• 
M 


u 
.a 

a 


VO M t^ IO CN IOVO 

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t-»vO io On cn vo vo 

ooo t-~ *0 'tNN 


Occupation 


1 

a 

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«H C 


Saleswomen 

Office employees . . . 

Stock girls 

Examiners, cashiers, 
bundlewrappers. . 

Others 

All occupations .... 



J3 

G 
vN 



■$ 



THE COST OF TURNOVER TO WORKMEN 149 

held in stores other than the first store was 263, a total 
of 526. 10 Not all of these positions, however, involved 
giving up a previous position, for 38 women reported 
extra and regular work at the same time. The number 
of extra positions held by them while doing regular work, 
however, is not stated. Allowing for the unknown ter- 
minations of employment, it is probable that the total num- 
ber of changes in this group was over 600 and that the 
approximate 4,427 weeks of unemployment caused by in- 
ability to procure work were distributed over at least 600 
changes of employment and possibly many more. 11 

The figures for unemployment due to inability to find 
work given above probably do not include all the unem- 
ployment due to this cause. In many instances where the 
original cause of the unemployment was sickness, home 
responsibilities, or simply the desire of the worker for a 
vacation, the period of unemployment was undoubtedly 
prolonged by the worker's inability to obtain work when 
desired. It is not stated what steps were taken by the 
investigators to separate the total period of unemployment 
into that due to the original cause, such as sickness or 
desire for a vacation, and that due to inability to obtain 
work when desired. Extremely precise separation would 
seem to be impossible on account of the difficulty of work- 
ers' recalling when they began to search for work. 

The third group of workers investigated in this study 
comprised 261 women and girls who had extra work only. 
This group contained a large number who did not need 
work or who were occupied at home or at school. Of 
71, out of the group of 261 who needed and were seeking 

"Ibid., p. 47- 

11 The total number of weeks of unemployment due to inability 
to obtain work is not given. The above figure is arrived at by multi- 
plying 12.8 (which is 75.9 percent of 16.9, the average unemployment 
due to all causes) by 346, the number of workers. 



150 THE TURNOVER OF FACTORY LABOR 

work and were not otherwise occupied, 28, or 39.4 percent, 
gave as the reason of unemployment inability to find work. 
Eighteen, or 25.3 percent, would accept work in stores 
only, 9, or 12.7 percent, lacked persistent effort, 10, or 
14. 1 percent, wished work in certain occupations only 
or in certain establishments, and only 6, or 8.5 percent, were 
handicapped by youth. 12 These figures indicate the import- 
ance of inability to obtain work among a group of em- 
ployees probably below the average in capability. 

A less satisfactory study of unemployment was made 
by the United States Bureau of Labor Statistics among the 
women in Indiana mercantile establishments and garment 
factories. The amount of unemployment due to inability 
to find work is not given separately. The unemployment due 
to lay-offs is given, but the amount due to temporary lay- 
offs not involving a termination of employment and the 
amount due to the lay-offs which involved a termination 
of employment are not given. It is probable that consider- 
able unemployment due to inability to find work is included 
in the unemployment due to voluntary vacation and to mis- 
cellaneous personal causes, such as home responsibilities 
and illness. 

The unemployment due to lay-offs among the mercantile 
employees is extremely slight, and even were it all due to 
the inability of workers permanently laid-off to find work, 
would be an item of minor importance. The number of 
workers affected was only 20 of 711, or 2.8 percent. The 
weeks of unemployment were 206 of 33,929 1-6 possible 
weeks of employment, or 0.61 percent. The average period 
of unemployment, 10.3 weeks, however, was an appreciable 
amount to those suffering it. 13 

12 U. S. Bureau of Labor Statistics, Bulletin No. 182, p. 60. 

13 "Hours, Earnings, and Conditions of Labor of Women in In- 
diana Mercantile Establishments and Garment Factories," U. S. 
Bureau of Labor Statistics, Bulletin No. 160, pp. 50 and 52. 



THE COST OF TURNOVER TO WORKMEN 151 

In the more seasonal garment industry, lay-offs were 
180 out of 517 women. In other words 34.8 percent suf- 
fered an average of 3.6 weeks' unemployment due to lay-off. 
The total unemployment due to lay-off, 644 1-6 weeks, con- 
stituted 2.52 percent of the possible weeks of employ- 
ment. 14 

A study of the Bureau of Labor Statistics of 34 cutters 
and 34 pressers in the New York cloak, suit and skirt in- 
dustry illustrates the importance of inability to find work 
in highly seasonal industries. 

The time in which these workers had no employment in 
their trade is tabulated by four week periods — 1 to 4 in- 
clusive, 5 to 8 inclusive, etc. Twenty-five of the 29 cutters 
and 25 of the 30 pressers reporting, were without work 
at their trade for more than twelve weeks. In order to 
ascertain the approximate average period of unemploy- 
ment at their trade, we may conservatively assume that 
the average length of the instances in each period of classi- 
fication was half a week less than the median point in the 
classification, that is the average of the cases of from 1 to 
4 weeks in length was 2 weeks, of the cases from 5 to 8 
weeks, 6 weeks, etc. The approximation of the average 
period thus obtained for the 29 cutters is 18.8 weeks, and for 
the 30 pressers 20.9 weeks per individual. 15 As 19 
of the 29 cutters and 22 of the 30 cutters had no 
work in their occupation for more than 16 weeks, each of 
these approximations is undoubtedly below the actual aver- 
age. For 29 cutters reporting, the number of periods of un- 
employment at their occupation was 78 and for 2 1 ] pressers 
reporting, 63. 

Twenty-four cutters and 27 pressers reported inability 

"Ibid., pp. 85 and 88. 

""Wages and Regularity of Employment in the Cloak, Suit and 
Skirt Industry," U. S. Bureau of Labor Statistics, Bulletin No. 147, 
P- 134. 



152 THE TURNOVER OF FACTORY LABOR 

to find other employment when thrown out of their posi- 
tions in the industry. One cutter reported "he was help- 
ing out his father," one did clerical work, three worked 
on raincoats, one on shirtwaists, three as salesmen in re- 
tail stores, and one as a traveling salesman. Two pressers 
engaged in "peddling," one worked at odd jobs, two worked 
for contractors, one worked at pressing piece work, one 
in a store. The remaining 20 were idle. Two reported 
that their wives took in washing. 16 

Thirty-one cutters held 125 jobs, this indicating at least 
94 changes or an average of 3 changes per cutter, while 
29 pressers held 61 jobs, this indicating at least 32 
changes. 17 These figures include only the number of jobs 
held as cutters or pressers. They do not include temporary- 
jobs held in other occupations during periods of unemploy- 
ment at the regular occupations. 

These changes do not indicate all the possible termina- 
tions of employment resulting in inability to find work. 
Since, however, among the cutters with a minimum of 94 
changes of job, there were 78 periods of unemployment 
reported, and since, among the pressers with 32 changes 
of job, there were 63 periods of unemployment reported, 
it is evident that the number of cases in which termination 
of employment did not result in unemployment were few, 
particularly among the pressers. 

Children, especially those below sixteen years of age, 
suffer from unemployment due to inability to obtain work 
because of the temporary or seasonal character of the work 
which they do and because of the few positions which, on 
account of their lack of strength and their inability to 
assume responsibility, they are able to fill. 18 

16 Ibid., p. 135. 

17 Ibid., p. 134. 

18 For discussion of seasonal character of children's work see 
above, p. 100. 



THE COST OF TURNOVER TO WORKMEN 153 



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154 THE TURNOVER OF FACTORY LABOR 



The importance of inability to obtain work as a cause 
of unemployment among children is indicated by the pro- 
portion of the time spent at work since leaving school and 
seeking work. A large part of the unemployment was 
no doubt due to sickness, being needed at home, etc., but 
the amount of unemployment is so large as to indicate that 
there must have been considerable inability to find work. 
Data on this subject collected by the Bureau of Vocational 
Guidance from the Chicago public schools show that, of 
1,955 boys who had been out of school from one month 
to over four years, 1,276, or nearly two-thirds (65.3 per- 
cent), had not been employed over three-fourths of the 
time, and 752, or 38.5 percent, had not been employed 
over half the time. Among 1,724 girls, 1,256, or nearly 
three- fourths (72.9 percent), had been employed not more 
than three-fourths of the time, and 839, or nearly one-half 
(48.6 percent), had not been employed more than half 
the time. The details are shown in Table XXXII. The 
demoralizing effect of so much idleness upon children in 
this formative period must be tremendous. Yet it is 
doubtful if it is scarcely less demoralizing than the con- 
ditions under which many of them work. 

As industrial experience increases, the amount of unem- 
ployment decreases. This is shown by the following sum- 
mary of Table XXXII : 





Percent of all 


Percent of all 


Percent of all 




boys employed 


boys employed 


boys employed 


Time out of school 


3^ of time or less 


from 3^ to M of 


over M of time 




since leaving 


time since 


since leaving 




school 


leaving school 


school 


1955 boys 


i mo. to 1 2 mo. inc .... 


45-2 


24.4 


30-4 


13 mo. to 24 mo. inc . . . 


36.7 


28.4 


34-9 


25 mo. to 36 mo. inc . . . 


28.8 


24-5 


45-7 


37 mo. to 48 mo. inc. 


25-3 


43 -o 


31-9 


Over 48 months 


21.4 


39-3 


39-3 



THE COST OF TURNOVER TO WORKMEN 155 





1724 girls 






1 mo. to 12 mo. inc 


53 


21.2 


25.8 


13 mo. to 24 mo. inc . . . 


50- 1 


25.4 


24-5 


25 mo. to 36 mo. inc . . . 


39-1 


27.4 


33-4 


37 mo. to 48 mo. inc . . . 


28.9 


32.0 


39-1 


Over 48 months 


46.5 


25.0 


28.5 



Old age is one of the most serious obstacles to finding 
employment. The loss of his job by a semi-skilled worker 
over forty or forty-five is likely to mean a permanent re- 
duction of his earning capacity, for he will have great diffi- 
culty in obtaining a job as good as his previous one. The 
employment manager of a Chicago printing establishment, 
in January, 191 7, when there was an acute scarcity of 
labor, received over 200 letters of response to an "ad" 
for a man past 50 to sit at their information desk. The 
men responding were of a remarkably good type. Two 
months later he was using the same file of letters to fill 
vacancies and stated that the applications were still almost 
as "alive" as when first received, although applications 
from younger men for other jobs at that time were "dead" 
almost immediately because of their securing other em- 
ployment. 

Lack of central sources of information concerning oppor- 
tunities for work compels workmen to go from plant to 
plant almost blindly in search of work and to accept the 
kind of job they can get rather than the kind of job which 
they wish, because they do not know where work of the 
kind they desire can be obtained. The result is often a 
dissatisfied workman and a termination of employment. 
The logical means for supplying a central source of in- 
formation concerning the opportunities for work is a cen- 
tral public employment office. Such offices are entitled 
to cooperation from employers in keeping them posted from 
day to day of the needs of each plant in order that the 



156 THE TURNOVER OF FACTORY LABOR 

wasteful and unjust system which compels workmen to go 
blindly from plant to plant in search of work may be 
eliminated. 20 
3. The difficulty of obtaining a satisfactory job. 

The difficulty which a workman who loses his place has 
in obtaining work consists not alone in the fact that he has 
to sell his services in an inadequately organized market 
in which information concerning sales opportunities is sadly 
lacking. The jobless man's difficulty is greatly accentuated 
by the fact that the least satisfactory jobs are those most 
frequently vacated. The ones which are vacant, therefore, 
are very largely a residue consisting of the lowest paying, 
most onerous, and most disagreeable. When the jobless 
man obtains work, therefore, he is very likely to find his 
job far from satisfactory. Several changes may be neces- 
sary before he finally obtains satisfactory work. 

The enormous number of changes caused by unattractive 
jobs was pointed out above (pp. 80-82). Add to the un- 
attractive jobs the large number of temporary jobs and it 
v/ becomes clear why the fact that two-thirds of the men hired 
leave within a year of being employed 21 is not conclusive 
evidence that the turnover is caused largely by habitual 
floaters. 

The jobs which are so unattractive that men cannot be 
held at them are, in many cases, not inevitably so, but are un- 

20 One of the difficulties in obtaining the cooperation of large 
employers in furnishing a clearing house of employment informa- 
tion is that in normal times they usually have so many men at their 
gate or on their application lists that they can fill almost all vacan- 
cies from these before any one sent out by a central agency could 
reach them. This, of course, is not true of small employers. Some 
employers, too, do not wish to announce the kind of work for 
which they are hiring men, for they find that when the men know 
the kind of jobs which are open they make fictitious claims of pre- 
vious experience at such work. 

a Supra, pp. 45-46. 



THE COST OF TURNOVER TO WORKMEN 157 

attractive simply because of neglect to remedy easily alter- 
able conditions. The piece rate may be too low, or inade- 
quate protection may be given the workers against heat, 
wetness, dust, fumes, etc., or fatigue relieving devices may 
be lacking. The large number of cases in which the job 
which the workman obtains, often after long search, proves 
unattractive is one of the most tragic features of the turn- 
over. 
4. The turnover as a demoralizing influence* 
In considering the effect of the turnover upon the morale 
of workmen, it must be remembered that in most factories 
two-thirds or more of the force is relatively stable, having 
worked in the establishment a year or more. It must be 
remembered also that precisely where impairment of morale 
would do the most injury — among the skilled and the 
higher grades of semi-skilled workers — the rate of turn- 
over is least. For these reasons it is easy to over-estimate 
the effect of the turnover upon the morale of the force. In 
seasonal industries and among the common laborers, lower 
grade semi-skilled laborers, and youths and girls, how- 
ever, the effect of the turnover upon morale is important. 

The turnover exerts a demoralizing effect upon work- 
men because: 

a. Frequent loss of position with the resulting loss in 
earning power, rendering it difficult for the worker to save 
and to get ahead, discourages and embitters him, destroys 
his ambition, and causes him to cease to make an effort to 
better his lot. 

b. Laziness and shiftlessness are habits, just as industri- 
ousness is a habit. The idleness which frequently intervenes 
before a worker obtains a new job tends to develop lazy, 
shiftless habits. 

c. Changing from job to job may be a habit. Irregular 
employment tends to create this habit and to cause workers 
to become unwilling to remain at a job for a long period. 



158 THE TURNOVER OF FACTORY LABOR 

It is noteworthy that in industries where the work is un- 
steady the workers are far less steady than the work. The 
habit of floating affects the attitude of workers toward their 
work and also their efficiency as workmen. When a floater 
takes a job, he does it not with the intention of remaining 
at it permanently, but with the rather definite expectation 
of leaving within a short time. The fact that he does not 
regard the job as a permanent one renders him more or 
less indifferent about learning it well and making a good 
record. He is little concerned if the employer finds his 
services unsatisfactory. It is hopeless to attempt to arouse 
his interest in his work or to earn his loyalty. 

Far more important than as a cause of demoralization 
among workers is the turnover as a symptom of demoraliza- 
tion which exists for other reasons. Particularly significant 
is it as a symptom of conditions which give rise to unsatis- 
factory industrial conditions and relations and which na- 
turally sap the morale of the men. 

Other costs of the turnover to workmen such as lessened 
earnings and greater accident hazard during the learning 
period are discussed above in connection with the cost of 
the turnover to employers. 

5. The turnover is not always a cost to workmen. 

Important to workmen as are many costs involved in the 
turnover, it is far from always being a cost. If a man is 
unfitted for a given job, it is obviously no benefit to him to 
remain at it. The quicker he leaves it and finds one for 
which he is fitted, the better for him and for society. 

Often the reason for a change is the desire of the work- 
man to get a better job. Under the prevailing haphazard 
systems of promotion this frequently is the only method 
by which he can better his condition. Often he has secured 
a new job before leaving his old one and so undergoes no 
unemployment. 22 

M An interesting and important study is, in how many cases do 



THE COST OF TURNOVER TO WORKMEN 159 

6. The turnover as a symptom from the standpoint of 
workmen. 

From the standpoint of workmen as from the stand- 
point of employers, the turnover is probably more im- 
portant as a symptom than as a cost in itself. It is a 
symptom of inefficient hiring methods which place work- 
men in positions for which they are unfitted or for which 
they are less adapted than for other positions ; it is a symp- 
tom of severe and disagreeable work; of bad working condi- 
tions ; of piece rates below a fair level ; of inadequate meth- 
ods of instructing workmen in the job when hired; of de- 
fective management resulting in friction, inefficiency, and 
often open conflict; of lack of opportunity for workmen to 
advance on the basis of merit; of poor planning and organ- 
ization of the work in individual establishments resulting in 
temporary jobs, an unduly high peak load, and an unduly 
low load; and of lack of coordination and cooperation be- 
tween industries whose slack and busy seasons dovetail. 

the changes of position in which the worker gives the reason 
"better job" or "better opportunity" elsewhere really result in the 
worker's bettering his condition permanently ? To what degree are 
the long run chances of advancement sacrificed to immediate con- 
siderations such as wages, gentility of the work, etc. ? There is no 
doubt that the proportion is large, although an intensive study of 
this problem has never been made. 

Another question is, which workers advance the more rapidly, 
those who remain with one employer or those who change about? 
In the Report on Women and Child Wage Earners (61 st Congress, 
2nd session, Senate Document, No. 645, v. VII, p. 181) figures are 
given purporting to show that children who changed employers 
advanced in wages more rapidly than those who did not change, 
but the figures are unreliable because of difference in industrial 
experience between the two groups, those who changed being more 
experienced, and because the geographical distribution is different, 
the children who changed being composed of a larger proportion of 
northern children, the children who did not change of a larger pro- 
portion of southern children. 



PART III 
THE CAUSES OF THE TURNOVER 



CHAPTER VIII 

SURVEY OF THE CAUSES OF THE TURNOVER 

i. Classification of the causes of the turnover. 

The causes of the turnover fall into eight principal groups. 
These groups and the principal causes falling within each are 
as follows: 

I. Reduction in the quantity of work due to : 

1. Industrial depression. 

2. Seasonal fluctuations in volume of business. 

3. Completion of temporary rush jobs. 

4. Changes in industrial processes. 

5. Discontinuance of the business, such as failure. 

II. Causes pertaining to the job: 

1. The nature of the work. 

2. Wages. 

3. Hours of work. 

4. Time of work, such as night work. 

5. Continuity of work, such as Sunday work. 

6. Unsatisfactory opportunities for advancement. 

7. Inaccessibility of the working place to the work- 

man's home. 

III. Causes pertaining to the methods of handling men. 

IV. Causes pertaining to fellow workmen. 

1. Disagreeable relations with fellow workmen. 

2. Terminations of employment in order to accompany 

friend who is leaving. 

V. Causes pertaining to the worker. 
1. Wanderlust. 

163 



164 THE TURNOVER OF FACTORY LABOR 



2 



Desire for vacation or change of work. 



3. Ill health. 

4. Injury. 

5. Superannuation. 

6. Death. 

7. Marriage. 

8. Workman undesirable: 

a. Unadapted to the work. 

b. Unreliable. 

c. Lazy. 

d. Intemperate. 

e. Insubordinate. 

f . Trouble maker. 

VI. More attractive opportunities elsewhere. 

VII. Causes pertaining to the attractiveness of the com- 
munity as a place of residence. 

Under this head fall changes due to dislike of small 
isolated localities or of large cities, or due to unattractive- 
ness of the climate. 

VIII. Changes due to the family of the worker. 

Sickness in the family of the worker, dislike of the com- 
munity by the family, in the case of children living at home, 
or moving of the family may cause the worker to quit. 

2. The relative importance of resignation due to more 
attractive opportunities and to dissatisfaction. 

The most important classification of the causes of resig- 
nations is into resignations on account of better opportuni- 
ties elsewhere, resignations on account of dissatisfaction, 
and resignations due to conditions not directly related to 
working conditions. It is highly important to the employer 
to know in what degree conditions in his plant are so un- 
satisfactory as to cause men to leave, in what degree condi- 
tions in other plants are so much superior as to attract men 
from his plant, and in what degree resignations are not at- 



SURVEY OF CAUSES OF THE TURNOVER 165 

tributable either to unsatisfactory working conditions in his 
plant or to more attractive working conditions elsewhere. 
It is important also to the public to know in what degree 
intolerable industrial conditions cause men to resign, in what 
degree resignations are due to workmen's taking advantage 
of opportunities to better their condition, and in what de- 
gree resignations are not due directly to the workmen's atti- 
tude toward their jobs. 

At the end of this chapter are tables showing the propor- 
tion of resignations due to these three classes of causes in a 
number of plants. From the standpoint of accuracy these 
figures leave much to be desired. The reasons for resigna- 
tion with the exception of three groups of workers are those 
given by the worker to the timekeeper, paymaster, employ- 
ment manager, or other representative of the firm who inter- 
viewed the workmen on leaving. In the case of the women 
in bookbinding (Group K) the reasons are' those obtained by 
Miss Van Kleeck of the Russell Sage Foundation from the 
workers sometime after leaving; in the case of the women 
in the dressmaking industry (Group O) the reasons were 
obtained from the workers by Miss Allinson; and in the 
case of the children in Group P the reasons were obtained 
by the Bureau of Vocational Guidance of the Chicago Pub- 
lic Schools. In many instances the reason given by the 
workman was undoubtedly fictitious. The workman who 
is leaving feels that it is none of the employer's business 
why he leaves and is apt to give a non-committal general 
reply such as "better job," "too hard," "didn't like it." The 
worker also has in mind the possibility that he may wish to 
return to the plant in the future or that the firm of which 
he seeks work may ask concerning his record from his 
previous employer. He will, therefore, be unwilling to give 
the real reason for leaving if he believes it might antagonize 
the employer toward him. 

The number of workers who leave for various reasons of 



166 THE TURNOVER OF FACTORY LABOR 

dissatisfaction is probably greater than the number who 
give this reason, and the number who give the reason "bet- 
ter job" is probably greater than the number who have 
already secured a job or who are attracted by a definite pos- 
sibility of a job which seems more desirable to them. Many 
men give the reason "leaving town," which is meaningless. 
Often they are not leaving the city at all. Many companies 
require men quitting without notice in the middle of a pay 
period to wait until the end of the period for their pay. 
In order to induce the foreman to have them paid at once 
the men often say they are leaving town. As the amount 
of misstatement is probably much the same in all plants and 
among all classes of workers, the value of the figures for 
comparative purposes is not destroyed by these inaccuracies. 

The distinction between resignations due to better oppor- 
tunities and due to dissatisfaction has been criticized on the 
ground that it represents no distinction at all. It is said that 
if a man has a chance to better himself he is also dissatis- 
fied with his present job, and if he is dissatisfied with his 
present job he leaves also because of a better opportunity. 
There are border line cases in which it is impossible to 
know which motive predominates. Nevertheless there is a 
substantial difference between men who leave because of a 
better opportunity and those who dislike their jobs so in- 
tensely that they are unwilling to remain at them. Those 
who give "better job* as a reason for leaving are attracted 
by a definite place. They may have no objection to the job 
which they are leaving. They leave simply because the new 
opportunity is more attractive. The men who leave because 
dissatisfied usually are not attracted by any particular op- 
portunity for usually they have no definite job in prospect. 
They leave because they are so dissatisfied with their job 
that they feel certain of being able to obtain a better one. 

The two classes of resignations are also symptoms of 
different industrial conditions. Resignations due to more 



SURVEY OF CAUSES OF THE TURNOVER 167 

attractive opportunities are symptoms of favorable in- 
dustrial conditions, such as good demand for labor creating 
opportunities for labor to advance. 1 Resignations due to the 
pressure of intolerable working conditions clearly are symp- 
toms of unfavorable industrial conditions. 

Difficulty arises in classifying some of the causes of 
resignation. The reasons "going farming" and "out of 
door" work have been classified as better opportunities. In 
many cases they are equivalent to a vacation for the worker 
for they are his means of obtaining an outing and properly 
to be classified with "vacation" under miscellaneous causes. 
The reason "to stay at home" covers a number of separate 
causes. It may mean that the worker is needed at home in 
which case it is properly classified with the miscellaneous 
causes. It may mean that the worker is tired of working 
and does not have to work, in which case it is classified 
under dissatisfaction. It is frequently given by children 
as a fictitious non-committal answer. I have classified the 
reason as if it were always genuine under the miscellaneous 
causes. 

The proportion of resignations due to dissatisfaction 
usually is low in plants having a low turnover and ex- 
ceptionally good working conditions and high in plants 
having a high turnover and less satisfactory working 
conditions or where the work by nature is hard or dis- 
agreeable. The proportion of resignations due to more at- 
tractive opportunities is high in plants with low turnover 
and good working conditions and low in plants with a high 
turnover and less attractive work or working conditions. 

1 This of course is not saying that the jobs which workers con- 
sider better opportunities are always in reality such, and does not 
deny that there is much ill advised changing, especially among 
youths and girls. In the main, however, the fact that workers have 
the opportunity to take positions which they consider preferable 
to the jobs they have indicates a desirable social condition. 



168 THE TURNOVER OF FACTORY LABOR 

In other words, where conditions are attractive not only 
do fewer men resign, but those who do, resign not because of 
dissatisfaction but because of still more favorable oppor- 
tunities elsewhere. This is illustrated by Table XXXIII 
which shows the relative number of resignations due to more 
attractive opportunities and due to dissatisfaction, according 
to the size of the turnover. 

The establishments in the table are divided into two 
classes, those with large turnovers and those with small 
turnovers. Almost without exception in the establishments 
with high turnovers, resignations due to dissatisfaction ex- 
ceed resignations due to better opportunities, and vice versa 
in the establishments with low turnovers. The average ratio 
of resignations due to dissatisfaction to resignations due to 
better opportunities among the establishments with high 
turnovers is 56.5 to 43.5 or 1.30 to 1, whereas among the 
establishments with low turnovers the average ratio is 
33.2 to 66.8 or 0.50 to i. 2 

The only exception to the rule that where working con- 
ditions are unusually attractive and the turnover low, resig- 
nations due to dissatisfaction are less than resignations due 
to better opportunities is establishment A, a metal working 
plant in which conditions are exceptionally good and which 
has held its turnover down to a remarkably low rate for a 
long series of years. The large proportion of resignations 
due to dissatisfaction may be due to the large part of the 
force employed in the foundries where it is difficult to 
break in new men unused to the heat and heavy work. 

3 In calculating these ratios, to avoid giving undue weight to 
plants D, B, and H, for which figures for several years were avail- 
able, an average was first obtained of the ratios in each plant for 
all years for which figures were available and this average ratio 
was used to represent the plant in calculating the average ratio 
for all plants. Plant L was not included in calculating the ratios 
for all plants, as the number of resignations from this plant on 
account of dissatisfaction is not known. 



SURVEY OF CAUSES OF THE TURNOVER 169 



Percentage which 

resignations due to 

dissatisfaction bear 

to all resignations 

due to better 
opportunity and 
to dissatisfaction 


MOlflOMONOi lOt-OwONOO • • • .\OH 


COO M >ONOO H f<5 OOHOOlOTfOO • • • • m rj- 
l> t- 10 ro "4- ^ ro »0 iOiO-<4-t> w Tt • • • • N CO 


Number of 

resignations 

due to 

dissatisfaction 


. . (vj t^ w f<) ^ e* oaO'tfO'tH . . . .corf 

• • O rO "tf f) <M ro O -3" O 00 ww • . • • CO J> 

• •C» w vOWNt>- .... 


Percentage which 
resignations due to 
better opportunity 

bear to all resig- 
nations due to 
better opportunity 
and dissatisfaction 


10 ^V^N^-,^^ 

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Number of 
resignations 

due to 

better 
opportunity 




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Number of 
resignations 

due to better 

opportunity 

and to 

dissatisfaction. 




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170 THE TURNOVER OF FACTORY LABOR 

According to the employment manager approximately one- 
third of the entire force in this plant is employed in the 
foundries. 

There are two exceptions to the rule that where the turn- 
over is high resignations due to dissatisfaction exceed 
resignations due to better opportunities. The first is estab- 
lishment F, an agricultural implement factory with a pro- 
nounced slack season during July and August. The superin- 
tendent says that a considerable number of workers leave 
during and immediately preceding these months on their 
own volition to go into other work, returning at the end of 
the slack season. These men know the slack season is com- 
ing and often secure jobs in advance of leaving. In such 
cases they are likely to give as their reason "another job" 
and are classified as resigning on account of a better oppor- 
tunity. 

The second exception, establishment D, manufactures 
mining machinery. A large proportion of the men are high 
grade semi-skilled men. These men are able to find more 
advantageous employment than less skilled men. It is 
possible that this accounts for the relatively large propor- 
tion of resignations due to better opportunity, although this 
cannot be proven. 

A most interesting example of the increase in the propor- 
tion of resignations due to more attractive opportunities as 
conditions in the plant improve is the printing and binding 
establishment L. During the period under consideration, 
"scientific management" was being installed in this plant. 
Conditions of work and particularly wages were being 
greatly improved. The total number of resignations during 
the period showed a very marked decrease falling from 
151 in 1912 to 36 in 1915. As conditions improved, a marked 
change occurred in the causes of resignation. Those due 
to other causes than more attractive opportunities elsewhere 
decreased steadily. By 19 15, 92.3 percent of the few who 



SURVEY OF CAUSES OF THE TURNOVER 171 

resigned because of directly industrial causes or causes not 
specified left because of more attractive opportunities else- 
where. The resignations on account of dissatisfaction are 
not specified in this plant but are included among the miscel- 
laneous causes. Resignations due to dissatisfaction prob- 
ably constitute the greater part of the resignations due to 
miscellaneous reasons. From 191 2 to 191 5 resignations due 
to miscellaneous reasons decreased from 44.4 to 5.6 percent 
of all resignations, indicating conclusively a large decrease 
in the number of resignations on account of dissatisfaction 
in comparison with the resignations on account of better 
opportunities. 

Another group of workers should be added to the groups 
of workers showing a high turnover and also a high per- 
centage of resignations due to dissatisfaction. This is group 
P of 1473 children whose reasons for resignation were 
ascertained by the Chicago Bureau of Vocational Guidance. 
These children, who in most cases were between 14 and 16 
years of age, received low wages. Much of the work, par- 
ticularly that done by the girls, such as wrapping, packing, 
labeling, counting, sorting, inserting, folding, pulling bast- 
ings, etc., was highly monotonous. The children's lack of 
strength and the fact that they are unused to industrial work 
tended to make the tasks onerous and disagreeable to them. 
As was pointed out above, 3 the rate of change among these 
children is high although the precise turnover rate cannot be 
stated. Fifty-two percent, however, left their first position 
within four months and nearly three-fourths (74.1 percent) 
within a year of being employed. 4 The proportion of resig- 
nations due to causes such as "wages too low," "hours too 
long," "work too hard," or "didn't like it," is naturally 
large. Resignations from the first position on account of 

3 Pp. 77-82. 

4 See above, p. 80. 



172 THE TURNOVER OF FACTORY LABOR 

dissatisfaction were 3.72 times as numerous as resignations 
due to more attractive opportunities. 

It is probable that the proportion of resignations on ac- 
count of dissatisfaction is larger in case of the first job held 
by children in industry than in the case of later jobs. This 
is because the children know less what kind of work they 
desire, because they have not become disciplined to work and 
find it especially onerous at first, and because children with- 
out industrial experience are less able to obtain as attractive 
jobs as those who are more experienced. 

It is probable that children resign more frequently on 
account of dissatisfaction than do adults. They have not 
become hardened to the grind, monotony and routine of 
work as have adults. They more insistently demand interest 
and variety in their work and they do not have the necessity 
of providing for a family to hold them to a job which they 
do not like. 

-v The meager data available tend to indicate that the pro- 
portion of resignations due to better opportunity tends to 
increase as the skill of the men increases and the proportion 
of resignations due to dissatisfaction tends to increase as 
the skill of the workmen decreases. This is to be expected, 
as the work and working conditions of the less skilled men 
are as a rule less attractive than the work and working con- 
ditions of skilled men, and as unskilled and slightly skilled 
men, being easier to replace, are treated with less considera- 
tion. Table XXXIV, showing the reasons for resignation 
in a Milwaukee metal working plant according to the degree 
of skill, illustrates the tendency for resignations on account 
of better opportunities to vary directly and resignations 
on account of dissatisfaction to vary inversely with the 
skill of the workers. 

"" The only exception to the rule that the proportion of 
resignations due to dissatisfaction increases as skill de- 
creases is the semi-skilled machine laborers of the better 



SURVEY OF CAUSES OF THE TURNOVER 173 



° 9 

H W _ 

fi M M 

H g M 

o a m 






w <; 


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Percentage of resig- 
nations due to better 
opportunity to all 
resignations due to 
better opportunity 
and to 
dissatisfaction 


lOOO O *0 CO 00 OOO W) 
t^<N 10 CO h mO*^m 

rr o <o »o VO ION w rj- 


Nurnber of 
resigna- 
tions due 
to better 
oppor- 
tunity 


TfrCO CO M t^ OJt-lOTT 

M 


Percentage of resig- 
nations due to dis- 
satisfaction to all 
resignations due to 
dissatisfaction and 
better opportunity 


IOM H lO M CSOWIO 

<NN Th M CO CO O <N CO 
10 V© ^ "* ^CON>0 


Number 
of resig- 
nations 
due to 
dissatis- 
faction 


tOH O " P* 7"" CO O CO CO <N 

O IO W ,•' W . CO M <0 
CM 


Number 
of resig- 
nations on 

account 
of dissatis- 
faction or 
better op- 
portunity 


f^Tt" CO CO *"*■ H OOOO 
COM x>» 10 OJ COMMO 
co w 


Number 

of 
resigna- 
tions 
for all 
causes 


OO O CO On 00<N^O 

H W) lO O CO 100*10<N 

CO H M M C< 


1 

O 

C3 
O 


i 

< 


a 
1.1 

CO T^- 

a* 2 ^ 

„_^ a- 

r3 H r 
^ S 
rjixfi 


Semi-skilled non-machine 
hands, better grade 

Semi-skilled machine hands, 
poorer grade 

Semi-skilled non-machine 
hands, poorer grade 

Molders 

Foundrv laborers 


& 

§ 



*8 

1 





174 THE TURNOVER OF FACTORY LABOR 

grade who show a greater percentage of resignations due to 
dissatisfaction than any other group. 

A similar relationship between skill and the proportion 
of resignations due to better opportunity is shown by data 
collected by the writer from a Chicago metal working plant 
and shown in Table XXXV. 

The number of resignations due to better opportunity con- 
sistently declines in relation to the number due to dissatis- 
faction, as skill decreases. 

"* It is to be expected that the proportion of workers leaving 
on account of dissatisfaction should be less in years of 
depression and greater in years of prosperity and that the 
proportion leaving on account of better opportunity should 
be greater in years of depression and less in years of pros- 
perity. The reason is that when jobs are scarce, workers 
tend not to leave unless they have a definite job in pros- 
pect, whereas when jobs are plentiful, they leave because of 
slight discontent. The evidence tends to show that this is 
true. In plant A, the number of resignations due to dis- 
satisfaction in I9 T 3, a year of prosperity, was 41.3 percent 
greater than the number due to more attractive opportunities. 
In 1914, a year of depression, it was only 7.2 percent greater. 
In 191 5, another year of depression, resignations on ac- 
count of better opportunities exceeded resignations on ac- 
count of dissatisfaction by 8 percent. In 1916, on the other 
hand, a year of great demand for labor, resignations due to 
dissatisfaction were 201.0 percent more numerous than 
resignations due to better opportunity. 

In plant D the year 1914 does not conform to this rule. 
In that year resignations due to better opportunity were 
only 6.1 percent more numerous than resignations due to 
dissatisfaction, compared with 34.2 percent in 1913, a year 
of prosperity. In 191 5, however, also a year of depression, 
resignations due to dissatisfaction were much less numerous 
in comparison with resignations due to better opportunity 



SURVEY OF CAUSES OF THE TURNOVER 175 



X 
X 

w 

pq 

S3 



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176 THE TURNOVER OF FACTORY LABOR 

than in 19 13, resignations due to more attractive opportuni- 
ties exceeding those due to dissatisfaction by 120.8 percent. 
Finally, in 191 6 with the return of a heavy demand for 
labor, resignations due to dissatisfaction sharply increased, 
exceeding those due to more attractive opportunities by 
16.8 percent. In both plants A and D the pronounced in- 
crease in the proportion of resignations due to dissatisfac- 
tion coincident with the labor scarcity in 191 6 is note- 
worthy. 

3. The numerical importance of various causes of dis- 
charge. 

The causes of discharge may be divided into four main 
groups : 

1. Causes relating to the workman's adaptability for the 
work, such as his skill, experience, physical and psycho- 
logical qualifications. 

2. Causes relating to the willingness of the worker to 
do the work and to assume responsibilities as distinguished 
from his ability to do the work. This class includes such 
causes as carelessness, laziness, unreliability, irregular at- 
tendance, lateness. The essential nature of the causes in this 
class is that they involve the failure to perform some duty 
rather than positive transgression, nonfeasance rather than 
misfeasance. 

3. Positively wrong attitude on the part of the worker. 
This includes such causes as disagreeable disposition, chronic 
fault-finding, fostering a wrong attitude in other workers. 

4. Positive misconduct. This group goes a step further 
than group 3 which is confined merely to the wrong attitude, 
and includes positively wrongful acts such as insubordina- 
tion, violation of rules, dishonesty, fighting, intoxication. 

Tables at the close of this chapter give the number of 
discharges due to the respective causes in a number of 
plants. These are the reasons reported by the foremen 
but they are not entirely reliable. A worker who makes 



SURVEY OF CAUSES OF THE TURNOVER 177 

a mistake which angers the foreman may be discharged as 
incompetent although in reality he is a very proficient work- 
man. 5 A worker who fails to report on a day when he hap- 
pens to be especially needed may be discharged for absentee- 
ism although normally regular in his attendance. The cases 
of this sort, however, probably do not constitute a large 
proportion of all discharges. There is undoubtedly some 
inaccuracy in the reports of foremen due to their failure to 
perceive what is really wrong with the worker. A slow man 
may be classed as lazy when in reality he is incompetent, 
or as incompetent when in reality he is lazy. Careless 
workers may be classed as incompetent and incompetent 
workers as careless. The second and third groups of causes 
are not affected by this sort of confusion. It is important, in 
order to have accurate statistics on the causes of discharge, 
that foremen be trained to distinguish accurately what is 
really wrong. 

Unadaptability and positive misconduct cause by far the 
greater number of discharges in the plants included in 
Table XXXVII. In most cases unadaptability causes more 
discharges than positive misconduct, but this is far from uni- 
versal. Causes relating to the willingness of the worker to 
work are responsible for a substantial number of dis- 
charges in every establishment ; causes due to wrong attitude 
are responsible for few discharges. 

Great variation exists in the relative importance of the 
various classes of causes in the different plants but the 
variation does not seem to occur in accordance with any 
principle. The larger the proportion of unskilled and slight- 
ly skilled men the smaller we would expect the proportion 

6 The writer finds it the common experience of employment men 
to be frequently requested by a foreman to rehire men discharged 
by the foreman as "incompetent." When asked why he desires 
the worker again, if he found him incompetent, the foreman fre- 
quently replies that he was angry when he discharged the man. 



178 THE TURNOVER OF FACTORY LABOR 

of discharges due to unadaptability, but data are unavailable 
to compare the plants on this basis. 

Among female workers we would expect a smaller number 
of discharges due to positive misconduct, such as insub- 
ordination, breaking rules, righting, etc. Establishment G, 
a store employing mainly female help, has an exceptionally 
small proportion of discharges due to misconduct. 

Table XXXVIII, which classifies tfre discharges in a large 
metal working establishment among men, boys under 21, 
and girls under 21, shows that in each of the three years the 
proportion of girls discharged because of positive miscon- 
duct was decidedly less than the proportion of men or boys. 

Table XXXVIII indicates another tendency which is to be 
expected, viz., that the proportion of discharges due to un- 
reliability and carelessness is unusually large among boys. 
The proportion is larger for the boys than for either of the 
other classes of workers by a very substantial amount for 
each of the four years except 191 5, when the proportion 
of discharges due to various causes of unreliability is small- 
est among the boys. Not only is the proportion of dis- 
charges due to carelessness, unreliability, and laziness 
greater among the boys than among the other two groups, 
but it is far greater than the proportion in any plant in 
Table XXXVII for the corresponding years. 

It is to be expected that the proportion of discharges due 
to unadaptability should be greater in times of depression 
than in times of prosperity and that the proportion of dis- 
charges due to positive misconduct, wrong attitude, lazi- 
ness and unreliability should be greater in times of pros- 
perity than in depression. The reason is that in times of 
depression when jobs are scarce, workmen fear to lose their 
jobs and consequently are more industrious, careful and 
obedient than in prosperous times. Although they endeavor 
also to avoid being discharged for incompetence, they are 
less able to overcome the shortcomings of their natural abil- 



SURVEY OF CAUSES OF THE TURNOVER 179 

ity and their training, hence the decrease in discharges due 
to incompetence is less than the decrease in discharges due 
to other causes, and consequently the proportion of dis- 
charges due to incompetence to all discharges is greater. 

The data furnish some evidence that this tendency ex- 
ists. In plant A the proportion of discharges due to un- 
adaptability rose from 30.9 percent in 1913, a year of pros- 
perity, to 37.8 percent in 1914, a year of depression. In 
191 5, also a year of depression, the proportion sank to 30.7, 
slightly below the proportion in 1913. In 1916, a year of 
great prosperity, it fell to 20.8 percent of all discharges. 
In plant C the proportion of discharges due to unadapta- 
bility rose from 46.2 percent in 1913 to 51.2 percent in 
1914 and 59.0 percent in 191 5, years of depression, and fell 
to 48.9 percent in 1916. In establishment D the propor- 
tion of discharges due to unadaptability rose from 35.0 per- 
cent in 1913 to 39.1 percent in 1914 and 40.0 percent in 
1915. In establishment G, on the other hand, the propor- 
tion of discharges due to unadaptability was 66.7 percent 
for six prosperous months from December 1, 191 5 to June 
I, 1 91 6 compared with 46.4 percent for the same month 
in 1914-1915, a time of depression. It is probable that more 
data would clearly demonstrate a tendency for the propor- 
tion of discharges due to unadaptability to increase in de- 
pressed times and decrease in prosperous times. 



i8o THE TURNOVER OF FACTORY LABOR 



TABLE XXXVI 

CAUSES OP RESIGNATIONS IN CERTAIN PLANTS AND AMONG 
CERTAIN GROUPS OF WORKERS 







Metal working 


A 




Metal 
working, B 


Causes of 
resignation 


1913 


1914 


1915 


1916 


1913 




No. 


% 


No. 


% 


No. 


% 


No. 


% 


No. 


% 


Total all resignations . 

Total resignations for 

which reasons were 


148S 

1444 

429 

606 

315 

94 

27 


100.0 

29.7 
42.0 

21.8 
6.5 
1.9 


581 

549 

139 

149 

189 

72 

21 


100.0 

25.3 

27.2 

34-4 

13. 1 

3-8 


621 

583 

216 
200 

66 
101 

18 


999 

370 
34-3 
11. 3 
173 
31 


3035 

2788 

593 

1784 

241 

170 

67 

82 


1 00.0 

21.3 

64.0 

8.6 

6.1 

2.4 
2.9 


819 

601 

184 
203 
173 




More attractive oppor- 


32.5 
359 
30.6 


Dissatisf action 

Change of residence . . 
Miscellaneous reasons 














Matrimony 


55 
12 


3-8 

.8 


42 
9 


"x.6 


62 

21 


10.6 
3.6 








21 


.8 








6 

218 




Reasons not specified. 


4i 




32 




38 




247 







TABLE XXXVI— Continued 

CAUSES OF RESIGNATIONS IN CERTAIN PLANTS 





Metal 
working, C 


Metal working, D 


Causes of 
resignation 


1913 


1913 


1914 


1915 


1916 




No. 


% 


No. 


% 


No. 


% 


No. 


%l 


No. 


% 


Total all resignations 

Total resignations for 

which reasons were 


1625 

1239 

378 
418 
342 
101 

77 


100. 

30. s 

33-8 

27.6 

8.1 

6.2 


238 

155 

55 
4i 
34 
25 
22 


99.9 

35-5 
26.4 
21.9 
16. 1 
14.2 


133 

115 

35 
33 
26 
21 
17 


100. 

30.4 
28.7 
22.6 
18.3 
14.8 


107 

98 

S3 
24 
10 
11 
10 


100. 

54- 1 
24- 5 
10.2 
11. 2 
10.2 


332 

291 

113 

132 

10 

36 

27 


100. 1 


More attractive oppor- 


38.9 


Dissatisf action 

Change of residence . . 

Miscellaneous reasons 

Illness or ill health . 


45.4 
3.4 

12.4 
9.3 
















































24 
388 


19 


3 

83 


1.9 


4 
18 


3-4 


1 
9 


1.0 


9 

41 


3.1 


Reasons not specified . 





SURVEY OF CAUSES OF THE TURNOVER 181 



TABLE XXXVI— Continued 

CAUSES OF RESIGNATIONS IN CERTAIN PLANTS 





Elec- 


Store, F 










Causes of 
resignation 


trical 

machin- 
ery, E 
1915 


Dec. 1, 

1915 to 

June 1, 

1916 


Dec. 1, 

1914 to 

June 1, 

1915 


Bat- 
teries, 
G 


Cameras, 

H 

1915 




No. 


% 


No. 


% 


No. 


% 


No. 


% 


No. 


% 


Total all resignations 

Total resignations for 

which reasons were 


255 

355 

70 
9i 
56 
38 

21 
2 

I 


100. 1 

27-5 
35-7 
22.0 
14-9 
10.6 
.8 
•4 


272 

250 

123 

14 
16 
97 
51 
22 
22 
2 


100. 

49.2 

5.6 

6.4 

38.8 

20.4 
8.8 
8.8 

.8 


161 

147 

72 

3 

15 

57 

27 

9 

16 

5 








366 

342 

143 

74 




100. 

49.0 

2.0 
10.2 

38.8 
18.4 

6.1 
10.9 

3-4 




100. 

19.5 
550 
13. 1 
12.4 


100. 


More attractive oppor- 


41.8 

21.6 


Dissatisf action 


Miscellaneous reasons 


125 

52 


36.6 
































8 


31 






73 

24 






22 




14 

























182 THE TURNOVER OF FACTORY LABOR 



X 
X 

3 



Women 
in 

dress- 

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industry, 

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Women 
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indus- 
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£S 


O ON ^"*°° • -O • • 

* >-< 06 1010 oi ' ' oi * * 

O ^t<N W W H . . 


d 
55 


•>* 0\ O wOO 10 • • w . i/» 

|> CO M M ... CO 


Cloth- 
ing, I, 
1916- 
1917 


£ 


O CO t^ 'tvO 

■ d >-<\d «o ! * * * " '. 

O Hlfl OJ 


d 
55 






to 

1 

I 

5 




Total all resignations . . . 

Total resignations for 
which reasons were 
given 

More attractive oppor- 
tunities 

Dissatisfaction 

Change of residence 

Miscellaneous reasons. . . 
Illness or ill health. . . . 

To stay at home 

Matrimony 

Deceased 

Scattering 

Reasons not specified . . . 









w+5 



4 


BS 




*.s 






?? 


o^S 




•*-> s 




*2 - 




CS CO 




to 
c3"^3 


^ 


ro?« 


•s 


cjyj 


a 


.2 8 




^ CJ 


>» 


3^-J 


P 


b^ 





(O ° 


fe 


<0 3 




Q S 


At 


- a 






CJ 


T CQ 


M 


6^ 


c 

> 




fc 


>>£ 


CTJ 


c3 V 


3 


^S 




J) 



Sd 



SURVEY OF CAUSES OF THE TURNOVER 183 



TABLE XXXVI— Continued 

CAUSES FOR RESIGNATIONS FROM FIRST POSITION BY 
I473 CHICAGO CHILDREN (d) 

(Group P) 



Causes of resignation 



Total 



No. 



% 



Boys 



No. 



Girls 



No. 



% 



Total all resignations 

More attractive opportunities 

Better job 

To school 

To learn a trade 

To go to business college . . 
Dissatisfaction 

Wages too low 

Too hard, too heavy 

Hours too long 

No chance to advance 

Didn't like the boss 

Too far from home 

Conditions bad 

Fight with fellow worker . . 

Not specified 

Miscellaneous reasons 

Vacation 

Sickness 

Needed at home 

Family moved 

Strike 

Foreman left 

Injured 

Scattering 



,473 

256 

214 

21 

14 

7 

953 

308 

209 

49 

70 

25 

8 

23 

42 

219 

264 

9 

95 

58 

35 

II 

6 

19 

31 



100. o 

17.4 

14-5 

1.4 

1.0 

• 5 
64.7 
20.9 
14.2 

32 
4.8 
1-7 

• 5 
1.6 
2.9 

14.9 

17.9 

.6 

6.5 

3-9 

2.4 

• 7 

• 4 
1.3 
2. 



866 

151 

134 

7 

7 

3 

595 

175 

131 

42 

59 

12 

4 

14 

23 

135 

120 

5 

46 
19 
24 
5 
5 
16 
00 



IOO, 

17 
15 



6.8 
1.4 

• 5 

1.6 

2.7 

15.6 

13.9 

.6 
53 
2.2 
2.8 

.6 

.6 
1.8 



576 

105 

80 

14 

7 

4 

358 

133 

78 

7 

II 

13 

4 

9 

19 

84 

113 

4 

49 

39 

11 

6 

3 



100.0 

18.2 

13.9 

2.4 

1.2 
• 7 
62.2 
23. 
13- 



(d) Report of Bureau of Vocational Guidance, Chicago Public Schools, 1916, p. 37. 

(e) Figures not reported. 



184 THE TURNOVER OF FACTORY LABOR 



TABLE XXXVII 

CAUSES OF DISCHARGE IN CERTAIN PLANTS 





Metal working, A 


Metal 
working, B 


Causes of 
discharge 


1013 


1914 


1915 


1916 


1915 




No. 


% 


No. 


% 


No. 


% 


No. 


% 


No. 


% 




495 
153 
64 
43 

46 


30.9 
12.9 
8.7 

93 


225 
85 
22 
10 

53 


'37^ 
9.8 

4.4 

23.6 


114 

35 

9 

I 

25 


30.7 

7-9 
• 9 

21.9 


467 
98 
31 
21 

46 


20.8 
6.6 
4-5 

9-7 


44 
13 
13 




Unadaptability 

Incompetent 

Slow 


29.6 
29.6 


Physically un- 












Shiftlessness and un- 
reliability 


165 


33-3 


57 


25-3 


40 


35.1 


138 


29.6 


6 

1 
2 

2 
1 


13.6 
2.3 

4-5 

4-5 
2.3 


Habitually lazy .... 
Caught loafing or 


46 

26 

86 

4 

3 

6 


9-3 

52 

17.4 

.8 

.6 

1.2 


21 

5 
26 
3 
2 
2 


93 

2.2 

II. 6 

1-3 

• 9 

• 9 


7 

6 
25 

1 
1 


6.1 

5-3 
21.9 

• 9 

• 9 


21 

32 

76 

6 

3 

15 


4-5 

6.9 

16.3 

1.3 

.6 

3-2 


Absenteeism 








Wrong attitude 


1 


2.3 








6 


1.2 


2 


9 






15 


32 
















Disturber and 


















8 


2.3 
18.2 


Positive misconduct . . 


166 
39 
74 
8 
IS 
30 


33-5 
7-9 

ISO 
1.6 
30 
6.1 


79 

18 

35 
6 
6 

14 


35-1 
8.0 

15.6 

2.7 
2.7 

6.2 


37 
5 

20 
3 
5 

4 


32.5 

4.4 
17.6 
2.6 
4.4 
35 


205 

77 
81 
8 
16 
23 


43-9 

16.5 

17.4 

1-7 

3-4 

4-9 


Insubordination. . . . 


6 


13.6 


Intoxication 


1 


2-3 




1 
16 


2.3 
35-4 


Miscellaneous causes. . 


S 


1.1 


2 


.9 


2 


1.8 


II 


2.4 



CHAPTER IX 

CAUSES OF THE TURNOVER PERTAINING TO THE JOB 

The causes of the turnover pertaining to the job include 
all causes arising from the physical nature of the work, its 
difficulty, the disagreeable features connected with it such as 
dust, fumes, odors, smoke, heat, wetness, dirt, exposure to 
cold, monotony and nervous strain, the wages, the regu- 
larity of work, the hours, the time at which work comes, 
whether all or in part night work, whether on Sundays as 
well as week days, the opportunities for promotion, and the 
accessibility of the working place to the workman's home. 

The work may not be exceptionally difficult or disagree- 
able as jobs in general go, nor be low paid for the degree 
of skill which it involves, but it may seem so to the worker. 
Workmen have different standards in regard to what is hard 
or easy, agreeable or disagreeable, based largely on what 
they are accustomed to. Work which seems undesirable to 
Americans may be attractive to newly arrived immigrants 
accustomed to the wage and hour standards of eastern and 
southern Europe. The type of workmen hired, in so far 
as possible, should be the type which will be satisfied with 
the conditions of the job. 

The job may seem difficult or low paid because the work- 
man is unqualified for the work. The job may require 
great strength when the workman is not a strong man; it 
may require good eyesight, dexterity or natural mechanical 
ability which the workman may lack. The reason given by 
the workman for leaving in such cases may be that the 
work is too hard, or the wages too low, when, as a matter 

185 



186 THE TURNOVER OF FACTORY LABOR 

of fact, the real cause is that he is unqualified for the task. 

The job may seem undesirable to the worker because he 
is new in the place. Whether a man is satisfied or dissat- 
isfied with his job depends largely upon his attitude, upon 
whether he tends to see its advantages or its disadvantages 
the more strongly. Things to which men are accustomed 
they tend to accept as a matter of course. Even though bad 
conditions exist in a shop, the men who have been there for 
some time and are accustomed to them, tend to think lit- 
tle of them and to put up with them as a matter of course. 
The new men, however, to whom the undesirable condi- 
tions are strange, are likely to find them intolerable. The 
frame of mind of the new man also is such that he is in- 
clined to see the disadvantages of the new job more promi- 
nently than its advantages. Men tend to be less critical of 
those things with which they feel themselves identified, of 
which they feel a part. Old employees, because of their 
long association with the shop and their feeling of being 
more or less a part of it, tend to be lenient toward unsat- 
isfactory conditions. The new men, however, have no such 
feeling of identification with the place. They view it coldly 
as strangers and its shortcomings stand out prominently to 
them. 

The new men also feel the distrust and suspicion which 
men are likely to feel toward unfamiliar things. This tends 
to render them more critical. 

The learning period is the most trying period in the 
worker's career. He has not acquired skill at the work, 
and the task is, therefore, especially onerous and difficult 
during this period. His feeling of strangeness also dimin- 
ishes his self-confidence and he is particularly susceptible 
to discouragement. He tends to judge the desirability of 
the job by his experience during the first few days before 
he has acquired proficiency, and he may conclude, because 



CAUSES PERTAINING TO THE JOB 187 

he finds the job difficult to learn, that it is too hard, or be- 
cause while learning his earnings are small, that it is under- 
paid. 

The job may seem too difficult or underpaid because 
the worker lacks proper instruction in how to do it. In 
few shops is systematic and careful instruction given to 
new men. The best and easiest way of doing the work 
and particularly the best methods of teaching men have 
not been worked out by the management. The new man 
is simply shown in a general way by the foreman or by a 
fellow worker how to perform the operation. The method 
he is taught may or may not be a good one, the instruc- 
tions he receives may or may not be clear. He is not closely 
followed up in order that his faults may be corrected as 
soon as they arise and before he acquires wrong habits of 
work which are difficult to break. 

It is not sufficient that the job be free from exception- 
ally hard or disagreeable features in order to enable it to 
hold men. If men are to remain for long periods at a job 
they must not only find the work free from unusually se- 
vere and disagreeable features but they must be interested 
in it. There must be ties which positively attach them to 
it as well as absence of repelling influences. Otherwise 
they will tire of the job in time in spite of the fact that it 
may be neither disagreeable nor trying. When a worker 
tires of his job he sees all of its minor difficulties and dis- 
advantages magnified many times. It is then only a mat- 
ter of time when he will quit. Because of the intimate re- 
lationship between men's interest in their work and their sta- 
bility it is important to know what powers modern factory 
work possesses to win the interest and attachment of the 
workers. 

Five principal characteristics seem most important in 
interesting men in work. They are: 



188 THE TURNOVER OF FACTORY LABOR 

i. More or less variety. The same thing continuously soon 
becomes tiresome physically and mentally. 

2. An element of the unexpected, the unknown. To know with 
absolute certainty what is coming next is dull. The love for the 
new, the unknown, is universal; it is part of the spirit of adventure 
which all men possess in large or small degree. Too much uncer- 
tainty is disagreeable, particularly to timid natures, but normal 
men enjoy an element of the unexpected. 

3. The opportunity to exercise initiative, ingenuity, to decide 
for oneself how to do things rather than have the decisions made 
for one. It seems an inherent trait in human nature to enjoy 
having one's resourcefulness appealed to. Problems in themselves 
exert a fascination. The process of unraveling them and the sense 
of achievement which comes with success is pleasurable. 

4. The ability to see a fairly definite prospect of advancing by 
merit to better paying or more attractive work. 

5. The opportunity to feel pride in one's work and to win the 
respect and esteem of other men. 

The importance of interest in work is indicated by the 
pleasure which men derive from doing work which subjects 
them to severe physical and mental strain so long as it in- 
terests them. At such work men slave for long hours at the 
sacrifice of health and recreation, and risk life and limb 
without complaint. Take away the elements which create 
interest and the easiest task becomes drudgery. 

Semi-skilled and unskilled factory work is seriously de- 
ficient in most of the characteristics which interest men in 
their work. Variety is perhaps the quality least lacking 
in factory work. In spite of the frequent references which 
we encounter to the repetitive nature of modern factory 
work and in spite of the undoubted tendency for repet- 
itive work to increase, it is doubtful whether half of 
factory workers are engaged in highly repetitive work. 
Most unskilled laborers, truckers, lumpers, most skilled 
laborers (artisans) and many semi-skilled hand laborers are 
engaged in work which is not a repetition of the identical 
movements. A large part of the semi-skilled machine op- 
erators and many hand workers (particularly bench work- 
ers and those engaged in assembling operations), however, 



CAUSES PERTAINING TO THE JOB 189 

do precisely the same operation hundreds or thousands of 
times a day. The tendency, moreover, clearly is for the 
repetitive nature of factory work to increase, and "scien- 
tific management" with its policy of subdividing and stand- 
ardizing has given the tendency a great impetus. 

The element of the unexpected, the unforeseeable is more 
limited than the element of variety, for in many jobs in 
which variety exists the element of unexpectedness is slight 
or negligible. 

The opportunity to display initiative and ingenuity is still 
more limited. In the first place, operations are reduced to 
the utmost simplicity by the subdivision of labor. Oper- 
ations which require ingenuity, judgment and skill are con- 
centrated in the hands of a few responsible men. The belts 
are tended by a specialist, tools are ground and set by a 
specialist, repairs are made by a specialist. The work 
done by the mass of workers is a residue from which the 
exacting elements, everything calling for ingenuity and judg- 
ment, has been largely extracted. In the second place, ma- 
chinery is made as fool-proof as possible. The demand of 
the manager ever is : "How can this machine be improved 
so that a cheaper man can operate it?" Jigs, fixtures and 
the semi-automatic machine which reduce the importance of 
the human element are the result. In the third place, opera- 
tions are standardized so that instead of relying upon his 
own judgment the worker simply follows the standard 
method of performing the work. Motion study is extend- 
ing standardization to the minutest motions of the workers. 

The importance of the lack of a fairly definite prospect of 
advancing to better paying or more attractive work has 
been inadequately appreciated. Most men feel the need of 
a goal to put the zest of the struggle and contest into their 
work, the hope of better things to-morrow to take their 
minds off the difficulties of to-day. The factory workman 
is the same as other men in these respects. Every factor 



igo THE TURNOVER OF FACTORY LABOR 

which lessens the hope for better things to-morrow renders 
the hardships of to-day doubly onerous. This is precisely 
the effect of the failure of employers to follow a definite 
policy of promoting by merit, which is typical of modern 
industry. It denies the worker the hope that efficiency in 
his present job will win him something better. The fact 
that his future prospects are indefinite, whether he remains 
at his same job or goes to another plant where it is a gam- 
ble whether he will fare better or worse, causes every dif- 
ficult feature of his job to be greatly magnified in his eyes. 
The disagreeable features of the job are unmitigated by 
knowledge that it is a stepping stone to something better. 
The worker's dislike for his job, thus intensified, precludes 
the development of interest in it. 

One of the most important determinants of the interest 
which men feel in their work is their ability to feel pride 
in it. The pride which the holders of responsible posi- 
tions feel in their work, the fact that it gives them the op- 
portunity to win men's respect and esteem is probably the 
most important reason for the substantial satisfaction which 
they derive from it, for their duties are frequently onerous. 
Semi-skilled and unskilled workmen are deprived of the 
opportunity to feel pride in their work by several circum- 
stances. 

In the first place, the simplification of work by the mi- 
nute subdivision of labor, by standardization, by the de- 
velopment of mechanical aids and semi-automatic machin- 
ery, and by the transfer of exacting operations to spe- 
cialists, lessening the demands made upon the workman's 
judgment and the skill and the responsibility which he 
bears, renders it impossible for the workman to feel the 
satisfaction of doing something which almost any one else 
cannot do. The commonplace character of his work is con- 
stantly reimpressed upon him by the management's hiring 
inexperienced outsiders, often of nationalities which he re- 



CAUSES PERTAINING TO THE JOB 191 

gards as "inferior/' and teaching them to do the same op- 
eration he is performing or similar ones. 

In the second place, semi-skilled and unskilled labor be- 
cause of the commonplace ability required to do it and be- 
cause it is low paid, dull, uninteresting, and frequently 
dirty and onerous, is looked down upon by men in general. 
A social stigma, therefore, attaches to the work and to 
those who are engaged in it, which renders the feeling of 
pride in the work even when well done almost impossible. 
This stigma which attaches to semi-skilled and unskilled 
work and to those engaged in it, is one of the principal 
reasons for the dislike or indifference toward their work 
which prevails among semi-skilled and unskilled workers 
and is one of the chief obstacles to the development of a 
spirit of workmanship among them. 

The more onerous, monotonous, dirty, disagreeable, and 
unattractive the work is, the greater is the social stigma at- 
taching to it. The originally unattractive nature of the 
work tends, therefore, to have a cumulative effect. It not 
only inflicts on the worker the physical discomforts natural 
to it, but creates the additional detraction of causing the 
work to be looked down upon more than ever. Precisely 
those kinds of work which are naturally most unattractive 
are made doubly so by the social stigma attaching to them. 1 

1 The great social cost of silly standards which attach a stigma 
in greater or less degree to hard, dirty, and disagreeable work, no 
matter how useful and no matter how faithfully and honestly done, 
is continually overlooked. The energy and carefulness with which 
men work depend in a large measure upon the interest and pride 
which they take in their work. By imposing obstacles to the feel- 
ing of interest and pride in their work by the less skilled manual 
laborers, these social standards directly limit the efficiency of this 
class of workers. 

These customary standards also tend to maintain false impres- 
sions concerning the real nature of the work. Much of the 
so-called unskilled or slightly skilled work requires far more pro- 



192 THE TURNOVER OF FACTORY LABOR 

By the limitation placed upon output by the piece rate cut- 
ting system, the workmen are deprived of the opportunity of 
escaping the stigma which results from the commonplace 
character of their work by differentiating themselves from 
the mass of workers through showing greater working ca- 
pacity. In order not to have the piece rate on his job re- 
duced, the worker must not produce more than a tac- 
itly understood amount. The workmen are deprived of 
the opportunity of differentiating themselves by manifest- 
ing superior workmanship, because accuracy beyond a given 
rough standard is often not required in semi-skilled work, 
because where it is required its attainment, is made al- 
most automatic by jigs and fixtures, or because the duty 
of setting the tools is transferred to a specialist. 

The opportunity of workmen to derive a sense of achieve- 
ment from their work and pride on account of their in- 
dividual proficiency is further limited by the policy of the 
management under the "drive" system (which is explained 
in the following chapter) of seeking to impress the work- 
ers with a sense of their unimportance. The endeavor of 
the policy is to convince the workmen that they are indi- 
vidually of no particular consequence, that they can be 

ficiency than it is given credit for, and in particular offers scope 
for more ability than is customarily supposed. The custom has 
been .to regard as common labor or slightly skilled labor operations 
which most men could perform in a fairly satisfactory manner 
with little or no training. The fact that there are many degrees 
of proficiency and that even at the simplest operations there is 
opportunity for great display of proficiency has been neglected. 
The direction of attention to the fact that even the simplest opera- 
tions offer great opportunity for proficiency has been one of the 
greatest services of "scientific management." The lack of social 
recognition of the opportunity in unskilled and slightly skilled work 
for special proficiency has undoubtedly tended to deter workmen 
engaged in such work from endeavoring to develop special profi- 
ciency because they have felt that no opportunity for proficiency 
existed. 



CAUSES PERTAINING TO THE JOB 193 

easily replaced without loss, and that no special abilities 
which they may have are entitled to recognition. The pur- 
pose of the policy is to overawe the workmen, to render 
them docile and willing to submit to the drastic "drive" 
policy. This policy is clearly hostile to the growth of 
all feeling of self-confidence in workmen, to the develop- 
ment of the belief that they are capable of attaining ex- 
traordinary proficiency, a belief which is a prerequisite to 
attempts by workmen to develop exceptional efficiency 
which might lead them to feel pride and pleasure in their 
work. It tends also to prevent them from recognizing what- 
ever extraordinary proficiency they may possess or at least 
from recognizing its importance and hence feeling pride and 
pleasure in their work on this account. 

Several additional factors contribute to the difficulty 
which modern workmen experience in feeling interest and 
pride in their work. One is the spirit of profit making 
which dominates business to the exclusion in large meas- 
ure of the spirit of social service. In spite of the wide- 
spread addiction to pecuniary standards of success, men 
derive substantial pleasure and satisfaction from achieving 
something useful. The consciousness of being useful is un- 
doubtedly to most men one of the principal sources of 
pleasure and interest in work. The modern organization 
of business and modern business ideals, however, deprive 
in large measure the men in the ranks of the pleasure 
and interest in their work which results from the pleasure 
in useful achievement. The workmen realize the pecuni- 
ary aims of the enterprises for which they are working. 
They know that the enterprises are more interested in ob- 
taining profits than in the rendering of service. They real- 
ize also that they themselves are employed to create profits 
rather than render social service and that increase in their 
efficiency means first of all larger profits for their employ- 



194 THE TURNOVER OF FACTORY LABOR 

ers and only incidentally and indirectly benefits for the 
public. 

Employed by profit seeking organizations which, in so far 
as they are able, keep for themselves the benefits of the 
workmen's skill and exertion, modern workmen tend to re- 
gard themselves as instruments for private profit rather 
than instruments of social service. They do not experi- 
ence in the performance of their duties and in the develop- 
ment of their proficiency the full interest and satisfaction 
which result from the knowledge that they are performing 
a social service. On the contrary, their dislike of being 
used as instruments of private profit in which they do not 
(in their own opinion, at least) adequately share, fosters 
in them aversion to their work and indifference to their 
efficiency. 2 

The workmen's lack of interest in their work and in the 
development of their proficiency is accentuated by their 
attitude toward the employing class. Workers in general 
regard themselves as victims of exploitation. Whether 
they are or not is immaterial here. The workers believe 
that they are and that their employers reap the benefits. 
This tends to destroy their interest in the development of 
their proficiency for several reasons. In the first place the 
belief that they are already rendering more service than 
they are paid for disinclines them to attempt to render still 
more. In the second place the knowledge that the benefits 
of their greater proficiency would accrue largely to the very 

2 The consciousness that they are primarily instruments of pri- 
vate profit rather than of social service has somewhat subtle effects 
upon workmen. It tends to cause them, for example, to feel 
degraded, to lose their self-respect, to feel contempt for themselves. 
This self-contempt which modern industry fosters among the work- 
ing classes is one of its most serious demoralizing influences and 
one of the greatest obstacles in the way of the elevation of the 
working classes. Trade unions have an elevating effect in so far 
as they dissipate the workers' feeling of self-contempt. 



CAUSES PERTAINING TO THE JOB 195 

employers who they feel are exploiting them causes them 
to limit their proficiency. They do not care to be bene- 
factors of employers who they believe are exploiting them. 
Reduction of the workmen's interest in the development of 
their proficiency reduces their interest in their jobs them- 
selves, because one of the most important sources of in- 
terest to workmen in their jobs is their interest and pride 
in their ability to perform the work well. 3 

The relations between the workers and the management 
affect the attitude of the men toward their work, the in- 
terest they feel in it, their susceptibility to dissatisfaction 
with it, in a much broader and more fundamental way than 
discussed ab6ve. There is no sharp dividing line between 
the causes of the turnover due to dissatisfaction with the 
work and the causes due to unsatisfactory relations with 
the management. Dissatisfaction with the work tends to 
create unsatisfactory relations with the management and 

3 A few years ago a German investigator collected opinions from 
several thousand workers concerning their interest in their work 
(Levenstein, Die Arbeiterfrage, Munich, 1912). The opinions were 
collected by questionnaire and are less satisfactory than opinions 
obtained by interview. The questionnaires, however, were dis- 
tributed one by one. They were not distributed simultaneously 
among groups of assembled workers where the crowd opinion 
might be the decisive influence. The questionnaires were distrib- 
uted among three classes of workers — miners, textile workers and 
metal workers. The results were: 





Miners (c) 


Textile workers (&) 


Metal workers (c) 




Number 


Percent 


Number 


Percent 


Number 


Percent 


Interested 

Not interested 

Indifferent 

No answer 

Totals 


318 

1,262 

366 

138 

2,084 


15-2 
60.5 
17.6 

6-7 
IOO. 


82 
865 
157 

49 
i,i53 


7-1 

75-1 

13-6 

4.2 

100. 


307 

1,027 

308 

l6l 

1,803 


I7.O 

56.9 
17. 1 

9.0 

100.0 







(a) p. 61; (b) p. 67; (c) p. 75- 



196 THE TURNOVER OF FACTORY LABOR 

unsatisfactory relations with the management tend to cause 
workers to see their work in a less favorable light and to 
notice disagreeable and unattractive features of their jobs 
to which they otherwise would have paid little or no at- 
tention. The profound effects of the relations between the 
men and the management upon the attitude of the men 
toward their work are discussed in the next chapter. 



CHAPTER X 

CAUSES OF THE TURNOVER ARISING FROM RELATIONS BETWEEN 
THE MEN AND THE MANAGEMENT 

i. The effect of the relations between men and man- 
agement upon the turnover. 

The relations between the men and the management are 
important from the standpoint of the turnover because : 

1. Unsatisfactory relations with the management are in 
themselves disagreeable and render the workers desirous 
of leaving. 

2. Unsatisfactory relations lead to ill-treatment of the 
workers by the management resulting in dissatisfaction and 
resignations. 

3. Unsatisfactory relations create resentment among the 
workers toward the management and lack of interest in 
their work which result in acts or omissions which lead to 
their discharge. 

4. Unsatisfactory relations with the management accen- 
tuate all the disagreeable features of their jobs in the eyes 
of the workmen and hinder them from developing an in- 
terest in the work which minimizes the effects of the dis- 
agreeable features of their jobs. The very fact that men 
are dissatisfied with the management puts them in a mood 
which causes them to see things in general in a less favor- 
able light. They notice unattractive features of their jobs 
which otherwise they would overlook. Most important of 
all, the knowledge that in doing their work they are simply 
benefiting the management which they dislike causes them 
to dislike the work itself. The fact that any increase in 

197 



ig8 THE TURNOVER OF FACTORY LABOR 

product or improvement in quality which they bring about 
by increasing their efficiency will accrue to the manage- 
ment which they dislike definitely kills their interest in doing 
their work well and causes them to do no more than is 
necessary to hold their jobs. Nothing is more certain to 
create a thoroughly dissatisfied workman than the desire 
to turn out as little as possible. It prevents the worker 
from becoming interested in the development of his effi- 
ciency, it takes from the work the spirit of the game and the 
zest in accomplishment, it prevents the development of 
pride in proficiency and of the spirit of workmanship, and 
leaves the worker no source of interest except his pecuniary- 
one to relieve the dullness and monotony of the job. 

5. Good relations between the men and management are 
in themselves a positive source of pleasure to the work- 
men, and the satisfaction derived from them tends to hold 
men in spite of unfavorable conditions of work or in- 
herently disagreeable features in the work itself. 

6. Just as dissatisfaction is cumulative in its effects, dis- 
satisfaction in one respect tending to create a fault-finding 
attitude which produces dissatisfaction in other respects, 
so also is satisfaction cumulative in its effects. When good 
relations prevail between workers and management, the 
work itself becomes more attractive to the workers because 
they are in a mood to see its favorable rather than its un- 
favorable features. 

7. Men give their allegiance to those persons and groups 
with which their self-interest is identified. When, there- 
fore, relations between management and men are bad, the 
workmen regard themselves not as part of the business 
but simply as outsiders. Their loyalty is to their own 
group with which their interest is identified. Feeling no 
attachment to the business, they are not deterred from leav- 
ing, when a better opportunity offers, by the dislike of 



MEN AND MANAGEMENT 199 

breaking such ties. Toward conditions in the shop they 
feel the free critical attitude of a complete outsider. Their 
interest in their work is enhanced by no interest in the af- 
fairs of the business, by no feeling of identity with the busi- 
ness. 

On the other hand, when good relations prevail between 
men and management, a feeling of unity and sympathy 
tends to develop between them which causes the workmen 
to regard themselves not as outsiders but as part of the 
business. They look upon the affairs of the firm not as 
the affairs of an organization entirely separate from them 
but as their own affairs in which they themselves feel an 
interest. This materially enhances their interest in their 
work and hence their satisfaction in doing it. The fact that 
the men feel themselves a part of the business rather than 
outsiders, causes them to take a less critical attitude toward 
conditions in the shop, for, as previously pointed out, men 
are more lenient in the criticism of things with which they 
feel identified. Finally, the very fact that workers feel 
themselves a part of the organization and feel a special in- 
terest in its affairs renders them loath to quit even when 
they can better themselves elsewhere. The abandonment of 
associations and interests to which they feel attached is not 
lightly made. 

The character of the relations between men and manage- 
ment in most shops appears to be governed principally by 
three f undmental conditions. These conditions are : 

1. The lack of acquaintanceship between men and man- 
agement. 

2. The "drive" system of management. 

3. The lack of a grievance system. 

2. Lack of acquaintanceship between men and manage- 
ment. 

The typical shop is characterized by more or less of a 
gulf between the men and the management. There may be 



200 THE TURNOVER OF FACTORY LABOR 

no positive hostility, but there is usually a lack of acquaint- 
anceship and of understanding. The men and management 
are to a great degree strangers. If the plant is a large one 
employing several thousand men, few of the individual 
workers are known to the high officials who determine fun- 
damental policies. Those in authority to whom the indi- 
vidual workers are known, the division superintendents, 
foremen and gang bosses, have neither the time nor the in- 
clination to pay much attention to the interests of work- 
men. They are absorbed in the problems of increasing out- 
put and reducing costs. The workmen feel, therefore, not 
without reason, that they are simply cogs in a great ma- 
chine which takes no particular interest in them. 1 

Lack of acquaintanceship and understanding leads on the 
part of the management to a forgetting of the sensibilities 

1 A striking example of how far apart workmen and management 
may grow without the management appreciating the existence of 
the gulf is furnished by the recent safety movement. Many man- 
agers testify that their safety campaigns were the means of dis- 
covering their lack of acquaintanceship with their men and brought 
about an acquaintanceship which materially improved relations. 
The reason for this was that in order to prevent accidents it was 
necessary to secure the cooperation of the men, since most accidents 
mechanical guards cannot prevent. The management was forced 
to go directly to the men and request their cooperation. Men were 
appointed on safety committees, where they v shared responsibility 
and authority and were brought into direct contact with those in 
authority. The effect of this contact on relations between men 
and management is illustrated expressively by a Wisconsin manu- 
facturer who writes me: "Our safety movement has taught the 
men that the office is more than a place to get fired." Mr. C. W. 
Price, field secretary of the National Safety Council and formerly 
safety expert of the Wisconsin Industrial Commission, describes 
the experience of a large Wisconsin mill, one of the most con- 
servative in the state, which had refused, until compelled, to build 
guards. Being induced to put in a safety organization, they made 
a remarkable record. The manager, however, stated that, although 
the saving in compensation payments and in time lost on account 



MEN AND MANAGEMENT 201 

of the men and to consequent tactless handling and failure 
to perceive and take advantage of opportunities to gain the 
men's good will. What the workmen think of a given 
practice, how they are affected by given conditions is over- 
looked or regarded as of little consequence. Fair consid- 
eration of requests or grievances of workmen is im- 
peded; the men's requests and grievances are underesti- 
mated in importance. They are often regarded as mani- 
festations of undue fastidiousness on the part of the men, 
or as due to a malicious delight in complaining. The man- 
agement tends to develop the attitude: "If a man doesn't 
like the way we do things here, he can get out." 

of disability more than equaled their expenditure, even had they 
not prevented a single accident, they would have been amply 
repaid for the money spent by the better relations with their men 
which resulted from better acquaintance and closer contact. 

Mr. O. H. Wernicke, president of the Macey Company, has been 
quoted in regard to their safety campaign as follows: "This is 
putting us in closer contact than any other scheme we have tried 
and we have tried a lot. We are all for it." (American Industries, 
v. XIV, No. 11, p. 20.) Mr. F. O. Clements, chairman of the 
central safety committee of the National Cash Register Company, 
.made the following statement several years ago at the conven- 
tion of the National Association of Corporation Schools : "I think 
the big thing that comes to us outside of the actual benefits of 
safety work is the inculcation of the spirit of cooperation that goes 
throughout the organization. . . . Safety committees permit close 
touch with your organization and nothing helps strengthen the 
spirit of cooperation like the personal touch." (Proceedings of the 
National Association of Corporation Schools, 1915, p. 817.) 

Another evidence of the lack of understanding between men and 
management is the frequency with which we hear the comment on 
the part of employers: "Our people do not appreciate or under- 
stand what we are trying to do for them." Men are not normally 
unappreciative, and when we hear such a statement it is probable 
that the betterment work was planned with a misunderstanding of 
the men's needs and desires due to lack of familiarity with the 
workman's point of view or that the workers, because of lack of 
acquaintance with the management, mistrust its motives. 



202 THE TURNOVER OF FACTORY LABOR 

Lack of acquaintanceship between men and manage- 
ment leads to a mutual misunderstanding of motives, and 
to a mutual lack of confidence. The management tends to 
develop the point of view that men are incapable of loy- 
alty, that they are inclined to take advantage of fair treat- 
ment instead of responding to it, and that the only way to 
handle them is to hold over them the fear of discharge. 

The failure of the management to show due considera- 
tion for the men's sensibilities causes them to feel that the 
management is interested almost solely in getting as much 
out of them as possible, that it regards them simply as in- 
struments of production, that it will take advantage of them 
at every opportunity, that it cannot be relied upon to do 
the fair thing by them. 

3. The "drive" system of management. 

The effects of the lack of personal relationship between 
the men and the management are accentuated by the "drive" 
system of management. The "drive" system, in part at 
least, is an outgrowth of the lack of acquaintanceship be- 
tween the men and management, because, did a close ac- 
quaintanceship between them exist, it is doubtful whether 
the management would be willing in many cases to pursue a 
drastic "drive" policy. 

The "drive" system of management may be defined as the 
policy of obtaining efficiency not by rewarding merit, not 
by seeking to interest men in their work, not by fostering 
their good will nor by seeking to obtain their cooperation, 
but by putting pressure upon them to turn out a large out- 
put. The dominating note of the "drive" policy is to inspire 
the workmen with awe and fear of the management, and 
having developed fear among them, to take advantage of 
it. The most prominent characteristic of the system has 
undoubtedly been the piece rate cutting policy which has 
prevailed generally and under which the piece rate is cut 



MEN AND MANAGEMENT 203 

when the earnings of the operative exceed a tacitly under- 
stood amount. 

The "drive" policy by its very nature renders discord and 
ill-feeling inevitable. The management attempts to get as 
much out of the workmen as possible without offering com- 
pensation for the greater output. The palpable unfairness 
of this policy is a source of considerable resentment to the 
workers. They retaliate for the speeding up by limiting 
output. This develops friction and clashes with the fore- 
men and gang bosses, accentuating the unsatisfactory re- 
lations. 

The "drive" system develops a dictatorial and overbear- 
ing attitude on the part of the management. The policy of 
the management is to cow the workers, to overawe them, 
to render them docile and submissive so that they will not 
resist being driven. It is desired that the workers feel 
themselves of little importance, that they possess little self- 
confidence, and that they shall not feel able or willing to as- 
sert their rights. Too much consideration shown them it 
is felt will lessen their awe of the management and it is 
deemed advisable to keep a "healthy" fear in their hearts. 
This attitude increases the gulf between the men and the 
managment, blinds the management more than ever to the 
sensibilities of the workman, leads to tactless methods of 
handling men, increases the workers' dislike of the man- 
agement, and results in friction, resignations, and discharges. 

One of the best ways to win the good will of men is to 
help them increase their earning capacity by developing 
their skill. This opportunity to gain the good will of the 
men is closed when the "drive" system is used, for the men 
are not interested in producing more when they know that 
if they do the piece rate will be cut. 

4. The lack of a grievance system. 

The management in most shops is hostile to the recep- 
tion of complaints. As stated above, the feeling is, "If a 



204 THE TURNOVER OF FACTORY LABOR 

man doesn't like it here, he can get out." To some extent 
this is due to the lack of a proper regard for the sensibili- 
ties of the workers caused by the lack of personal con- 
tact with them. To some extent also it is due to the de- 
velopment of a dictatorial attitude under the "drive" sys- 
tem and impatience at having one's methods questioned. 
Partly also it is due, as suggested above, to the fear that 
the hearing and adjustment of grievances will stimulate the 
presentation of other grievances and will give the workmen 
exaggerated notions (in the management's opinion) of their 
rights so that they will become unwilling to submit docilely 
to the "drive" system. 

In most establishments a worker with a complaint which 
he cannot have adjusted satisfactorily by the foreman, has 
in theory the right to appeal all the way up to the presi- 
dent. In practice, however, this right is negligible because 
of the policy of indiscriminately backing up the foreman, 
right or wrong. This policy is defended on the ground 
that to reverse the foreman would impair his ability "to 
maintain discipline." The right of appeal is empty also be- 
cause of the lack of protection for the appellant from dis- 
crimination and mistreatment at the hands of the foreman. 
A foreman who takes offense at a worker who appeals from 
his decisions can make it unbearable for the worker to re- 
main in the shop. The only remedy under existing condi- 
tions in most shops for a workman with a grievance is to 
resign. 

The lack of a grievance system is important not only 
because there are no means to remedy the undesirable con- 
ditions which arise, but also because the lack of opportu- 
nity to have grievances heard increases the importance of 
the grievances to the workmen and creates new griev- 
ances. A man may have a complaint of slight importance 
which under a proper system of handling grievances would 
be easily settled. The fact that he cannot secure action on 



MEN AND MANAGEMENT 205 

the complaint, however, causes it to assume an importance 
in his eyes out of proportion to its real seriousness. He 
nurses it and frets over it and it becomes large in his eyes. 
His principal grievance is not the original complaint but 
the fact that he cannot obtain a fair consideration of the 
original complaint. This is what happens when a workman 
cannot obtain a hearing or when, if there has been a hear- 
ing, he feels it was merely perfunctory and that the foreman 
was sustained as a matter of course. His grievance assumes 
a new importance and he acquires a new complaint, namely 
that he has been denied a fair and impartial hearing. 

Dissatisfaction tends to be contagious. One dissatisfied 
man is likely to spread dissatisfaction among his friends. 



CHAPTER XI 

CAUSES OF THE TURNOVER PERTAINING TO THE MEN, AND 
THE TURNOVER DUE TO MORE ATTRACTIVE OPPOR- 
TUNITIES ELSEWHERE 

The causes of the turnover pertaining to the men fall 
into six main groups: (i) lack of aptitude for the work; 

(2) undesirable attitude toward the work or management; 

(3) change for the sake of change; (4) sickness or ill 
health; (5) marriage; (6) death. Only the first three re- 
quire discussion. 

1. Lack of aptitude for the work. 

It is impossible to say what percentage of terminations of 
employment are caused by the lack of adaptability of 
workers to their jobs. The proportion must vary greatly 
in different plants according to the quality of the labor sup- 
ply, the requirements of the work, the efficiency of the hir- 
ing, and the efficiency of the training given new men for 
their work. 

The number of men discharged because of incompe- 
tence does not indicate the total number of men leaving be- 
cause of unadaptability. Many men who are misfits are not 
discharged but resign, giving such reasons as that the work 
was too hard or the pay too low. Discharges ascribed to 
incompetence are often due not to lack of ability to do the 
work but to unwillingness to make the effort to learn it. 
On the other hand, some men producing little are dis- 
charged on account of "laziness" when the trouble actually 
is that they lack skill. 

The problem of hiring competent men is complicated 

206 



CAUSES PERTAINING TO THE MEN 207 

by the fact that the men in the market for jobs are to a 
large extent those who are unable to hold jobs. On ac- 
count of their difficulty in holding jobs they tend to con- 
stitute an unusually large proportion of the men seeking 
work. Failure to exercise care in selection results in many 
such being hired. 

Men out of work are apt to misrepresent their qualifica- 
tions in order to obtain a job which appeals to them. At- 
tracted by the higher pay they often seek jobs beyond their 
ability or for which they lack proper training or experi- 
ence. The failure of modern factories to organize their 
work, to provide definite avenues of advancement, and to 
promote along these lines on the basis of merit forces men 
who are ambitious to improve their condition to leave their 
employer and to attempt work elsewhere for which they 
possess little training or experience. The rate of discharge 
among these men is naturally high. 

Few establishments provide carefully planned and care- 
fully supervised instruction for newly hired manual labor- 
ers. Inadequate instruction in how to do the work fre- 
quently causes men to appear to be incompetent, when, if 
properly taught, they could do the new job easily. 1 

Lack of adaptability may be due not to deficiency in skill 
but to physical defects. It is impossible to give definite fig- 
ures concerning the number of terminations of employ- 
ment caused by physical unadaptability. Evidence is avail- 

a I have been unable to secure data on the decrease in the dis- 
charge rate following the institution of systematic instruction. The 
effect is difficult to isolate because the institution of instruction is 
likely to be accompanied by changes in other managerial policies, 
such as transition from the "drive" to the "incentive" system, by 
changes in standards of work (usually an increase in the minimum 
quantity required and also higher standards of quality), and by 
improvement in the methods of selecting men and of administering 
discipline. Then also there are the constant changes in the labor 
market which materially affect the discharge rate. 



208 THE TURNOVER OF FACTORY LABOR 

able, however, which shows that unadaptability to work on 
account of physical defects is very prevalent. The Ohio 
Industrial Commission reports that 6 Ohio plants in ex- 
amining 8,054 employees on their payrolls found 791, or 
nearly 9.8 percent, unfit for the work in which they were 
engaged. In some cases the unfitness was due to diseases 
which either menaced the health of others or slowly under- 
mined the worker's health without immediately affecting his 
ability to do the work.* 

Some indication of the prevalency of defects which 
unfit workers for their jobs is given by the proportion of 
rejections among applicants for employment. These, of 
course, include rejections on account of diseases which 
may not affect the applicant's immediate efficiency, 
but their number is usually small. The figures, however, 
are far from satisfactory. In the first place, there are 
varying standards of fitness and an applicant who might be 
regarded as unfit for a given task by one company might 
be regarded as acceptable by another company. In the 
second place, the fact that an applicant is given employment, 
does not indicate that he is fitted physically for the job for 
which he originally applied. The applicant may be found 
unsuited for the work for which he was being considered 
by the employment department, but be hired for some- 
thing else. The head of the health and sanitation de- 
partment of an eastern manufacturer of grinding wheels 
writes that in the 13 months ending February 1st, 191 8, 
they totally rejected 117 applicants, but were able to find 

'Bulletin of the Industrial Commission of Ohio, v. II, No. 6, on 
"Physical Examination of Wage Earners in Ohio in 1914," p. 17. 

There was considerable difference in the definition of an "unfit" 
employee. Some establishments reported all workers unfit who 
possessed defects which required correction and which could be 
corrected. Other establishments reported as unfit only workers 
whom it was necessary to discharge or to transfer to other work. 



CAUSES PERTAINING TO THE MEN 209 

other work for 154 applicants who were unsuited for the 
first job for which they applied. In the third place, some 
defects such as defective eyesight are easily remedied. 
Many applicants who are rejected at first are accepted upon 
having their deficiencies corrected. A large rubber goods 
manufacturer reports that although 7 percent of the ap- 
plicants passed by the employment department were re- 
jected on first examination, enough were able to remedy 
their defects so that the net rejections were less than two 
percent. The figures do not show to what extent the re- 
jection rate was lowered by applicants through the influ- 
ence of the medical department being induced to remedy 
their defects. 

Bearing in mind the variation in the rejection rate due 
to variations in standards of fitness and in the character 
of the work, the general statement can be made that in 
most industrial establishments the percentage of applicants 
accepted by the employment department who are rejected 
by the medical department is less than five. In the case 
of railroads, public utilities and insurance companies where 
the examinations are more thorough and the standards of 
fitness higher, the rejections are more numerous. Replies 
to a questionnaire issued by the National Association of 
Corporation Schools were that a printing establishment re- 
jected 65 out of 2,680 examined in 18 months, or 2.42 per- 
cent, a manufacturer of electrical apparatus less than I 
percent, a manufacturer of machinery one-tenth of 1 per- 
cent, a specialty manufacturer about 1 percent, a retailer 
3 percent, an automobile manufacturer 10 percent. An- 
other automobile manufacturer replied that about 2 percent 
examined for membership in the benefit society were re- 
jected or required to sign waivers because of defects. On 
the other hand, two railroads reported rejections of 8 and 
10 percent respectively, a public service company 59 out 



210 THE TURNOVER OF FACTORY LABOR 

of 1,500, or 3.9 percent, two insurance companies 13 and 
from 15 to 16 percent respectively. 3 

A rubber manufacturing company writes me that out of 
1,087 examined from March to December, 191 5, inclusive, 
3 percent were rejected as permanently unfit, and 15 per- 
cent as temporarily unfit. Most of the temporary defects 
and ailments were remedied and the applicants hired. An 
aluminum reduction plant writes that out of 4,107 examined 
during 191 5, 388, or 94 percent, were rejected. An east- 
ern manufacturer of grinding wheels writes that of 6,914 
examined in the 13 months from January 1st, 1917, to 
February 1st, 1918, they rejected 117, or 1.7 percent, be- 
cause unsuited for any work they had to offer, and gave 
154, or 2.2 percent, work for which they were better suited 
physically than that for which they applied. The head of 
the Department of Health and Sanitation writes, "I am 
quite sure that our number of rejections would be much 
greater than this were it not for the fact that our em- 
ployment manager knows we will not consider certain types 
of men in some of our departments where the work is 
hazardous to the eye, or where it is exhausting in nature." 

A silk manufacturer rejected 11 out of 327 examined in 
a month, or 3.4 percent. 4 The Rike-Kumler Company of 
Dayton, Ohio, found about 5 percent of all applicants were 
unfit for service and that an additional 5 percent were em- 
ployable but in a doubtful class. 5 A manufacturer of sani- 

a National Association of Corporation Schools, Proceedings, 
1915, PP- 715-717. 

4 H. L. Gardner of Cheney Bros, before Conference of Employ- 
ment Managers' Association of Boston, May 10, 1916. U. S. 
Bureau of Labor Statistics, Bulletin No. 202, p. 53. 

B Frederick H. Rike: "The Need for and Value of Physical 
Examination of Employees," Annals of the American Academy 
of Political and Social Science, v. LXV, May, 1916, on "Personnel 
and Employment Problems," pp. 225-226. 



CAUSES PERTAINING TO THE MEN 211 

tary supplies writes that rejections in their plant run about 
10 percent. 

The Ohio Industrial Commission reports that 26 estab- 
lishments rejected 1,040, or 4.5 percent, of 23,118 appli- 
cants for employment. 6 

Dr. H. G. Lamson of the Du Pont Powder Company 
stated at the Industrial Service Conference held in April, 
1918, under the auspices of the Wisconsin Industrial Com- 
mission that the rejection rate among some 7,000 applicants 
examined was 1.65 per 100. 

An exceptionally high proportion of rejections is re- 
ported by the John B. Stetson Company which in the year 
ending October 31, 191 5, rejected 78 out of 311 applicants 
examined, or 25.1 percent. 7 

Mr. W. P. Barba of the Midvale Steel Company in an ad- 
dress before the Philadelphia local section of the Amer- 
ican Society of Mechanical Engineers, reports 391 rejec- 
tions out of 2,569 examined in 1913 — a rate of 15.2 percent. 
Two hundred and eighty-five of the rejections were on ac- 
count of venereal diseases or consequences, leaving 106 
rejections, or 4.1 per hundred, on account of general causes. 8 

In some cases the proportion of disqualifying defects 
runs remarkably high. Defective vision is an impairment 
which is especially likely to be frequent, particularly in work 
making severe demands upon the vision. Examinations by 
the United States Public Health Service of 3,107 workers 
in the cloak and suit and dress and waist industries of New 
York City, industries in which good vision is peculiarly 

6 Bulletin of the Industrial Commission of Ohio, v. II, No. 6, on 
"Physical Examination of Wage Earners in Ohio in 1914," p. 12. 

7 Milton D. Gehris : "Employment Problems and How the John 
B. Stetson Company Meets Them," Annals of the American Acad- 
emy of Political and Social Science, v. LXV, May, 1916, on "Per- 
sonnel and Employment Problems," p. 159. 

8 Iron Age, November 25, 1915. 



212 THE TURNOVER OF FACTORY LABOR 

necessary in many positions, disclosed that 1,848 workers or 
61.6 percent of the number examined had defective vision. 9 
In a large number of cases these defects must have seri- 
ously impaired the workers' efficiency. Mr. J. J. McCabe, 
vice-president of the Imperial Wall Paper Company, re- 
ports that 510 examinations among their employees dis- 
closed 122 cases of defective vision. 10 The Norton Com- 
pany found 208 workers with defective sight among 1,400 
examined. 11 These were not all the cases of defective eyes 
found, but this number needed glasses or a change in 
glasses. 

In May, 1915, the Ford Motor Company instituted a re- 
quest for transfer. In the next three and one-half months, 
1,466 petitions for transfer were received. Three hundred 
and four applicants were transferred to other departments, 
188 were given other work in the same department, and 974 
applications were refused. These transfers were made by 
the medical department for physical reasons and probably 
do not represent all of the transfers which could have been 
advantageously made because of physical handicaps. The 
force at this time was over i5,ooo. 12 

A "health audit" in the Eaton, Crane and Pike Company 
showed that out of 599 employees examined, only 5 were 
normal. Five hundred and ninety-four required advice 
concerning their living habits or physical condition, 377 
were advised to go to a doctor for treatment, and 317 of 
these 377 disclaimed knowledge of their impairment. 13 

9 Joint Board of Sanitary Control in the Cloak, Suit and Skirt 
and the Dress and Waist Industries, Workers' Health Bulletin, 
1915, p. 11. 

10 "The Maintenance of Human Machinery," Wall-Paper News 
and Interior Decorator, March, 1916. 

n Health and Sanitation, p. 6. Privately printed by the Norton 
Company, Worcester, Mass. 

12 Ford Times, January, 1916, p. 272. 

" "Why a 'Health Audit' Pays," Factory, v. XX, p. 438. 



CAUSES PERTAINING TO THE MEN 213 

All of the above data indicate strongly the great im- 
portance of exact methods of determining the physical 
adaptability of workers to their tasks. 

2. Undesirable attitude of the worker toward the work 
or the management. 

Under this head fall discharges due to failure to make 
the effort necessary to learn the work properly or to ex- 
ercise proper care in doing it and discharges due to insub- 
ordination and to an intolerable attitude toward the man- 
agement. 

Although many discharges are due to the chronic lazi- 
ness and general good-for-nothingness of the worker or his 
unruly nature and the impossibility of getting along with 
him, many are due not to deep-seated traits in the character 
of the worker but to industrial conditions. 14 Failure of 
workmen to make the necessary effort to learn their job 
and failure to exercise proper care in doing it which 
bring about so many discharges, are often due not to 
chronic laziness or carelessness but to dislike of the work 
or lack of interest in it, caused by such things as the onerous 
character of the task, low wages, and lack of a prospect of 
getting ahead ; to lack of pride in the work and of the spirit 
of workmanship ; and to hostility to the management which 
leads the worker to desire to render the least possible serv- 
ice which is necessary for him to hold his job. Insubor- 

14 Human ability and character are of course the most important 
instruments of production, and in appraising the efficiency of the 
modern industrial system one must inquire in what respects it 
encourages and discourages the development of personal charac- 
teristics which are valuable instruments of production, how efficient 
are its methods of developing these characteristics, in what degree 
are latent abilities undeveloped or unemployed. In short, does mod- 
ern industry make the investment in skill, knowledge and char- 
acter highly attractive from a business standpoint to all classes? 
See a suggestive article on this subject by Professor W. M. Leiser- 
son in the Survey, v. XXXI, p. 165. 



214 THE TURNOVER OF FACTORY LABOR 

dination is in a large measure due either to the fact that the 
worker dislikes his job and cares little whether he loses it 
or not, or to resentment toward the management aroused 
by the worker's treatment under the "drive" system. 

The habits of laziness, shiftlessness and carelessness 
which are especially prevalent among youths and boys are 
in large measure due to lack of training and guidance re- 
sulting from the weak parental control over children which 
is characteristic of the age. This is especially acute among 
the immigrant population. The clinging by the parents to 
the ways of the old world causes them to be regarded with 
disrespect by their children who pick up American manners 
and who feel that their parents do not understand what is 
best under the conditions of the new world. 

3. Changes due to habitual floaters and to desire for 
change for the sake of change. 

The floaters in indoor work are clearly to be distinguished 
from the various classes of outdoor seasonal workers which 
exist in different parts of the country. The outdoor float- 
ers who work in seasonal industries appear to constitute 
rather distinct and separate classes, to engage to only a 
slight extent in indoor work, and to be little responsible 
for the turnover among factory working forces. 

Three principal types of floaters in indoor work are to be 
distinguished : 

1. Those who change out of the desire for new experi- 
ences, the love of the new and the unknown. The love of 
the new, the unknown and the unexpected which constitutes 
the spirit of adventure exists in practically all men, although 
in widely varying degrees. Just as some men get into a rut 
so that any substantial divergence from their daily routine 
causes them acute discomfort, so others are continually 
hankering for new experiences, and are unhappy without 
them. To a worker of this type the little changing routine 
of the highly repetitive, semi-automatic modern factory 



CAUSES PERTAINING TO THE MEN 215 

work soon becomes unendurable. His pay and his treat- 
ment may be satisfactory, the work may be easy, the work- 
ing place attractive, his fellow workers agreeable, but the 
job becomes intolerably tedious. He desires new work, 
new surroundings, new associates. This type of workman 
rarely remains at a single job for more than three or four 
months. He covers the continent in his wanderings. 

2. Sharply to be distinguished from workers who float 
because of a love of adventure and new experiences, are 
those who float because of dislike of work. The former 
type are often competent, hard working men. They are 
found among the most skilled workers as well as among the 
common laborers. The latter are lazy and shiftless. Be- 
cause they are lazy and shiftless they are usually poor 
workmen. After a short time at a job the work becomes in- 
tolerably onerous to them. The job which they do not have 
seems easier and more pleasant. They decide that the work 
is too hard and quit. The reason given for leaving is likely 
to be something such as "work too heavy," "couldn't stand 
the work." This type of floater does not cover the coun- 
try as does the adventurous type. The adventurous type is 
not satisfied to remain long in one locality. He is as anx- 
ious to change localities as to change jobs. The lazy type 
of floater may never leave a single locality. He returns 
often to places where he has previously worked and if a 
good employment department does not exist he may be re- 
employed. 

3. The third type of floaters are boys and young men 
and to a less degree girls. Among the causes contributing 
to the large amount of floating among these classes are : 

a. The desire for new experiences, the adventurous spirit, 
which is particularly strong among boys and young men. 

b. Their buoyant and carefree spirits submit less read- 
ily to the routine and grind of work than those of older 
men who have been tamed by care, responsibility and the 



216 THE TURNOVER OF FACTORY LABOR 

discipline of work. The grind and irksomeness, there- 
fore, weigh especially heavily upon boys and youths. 
The rapid changing among them is in a great degree rebel- 
lion against the grind of work, an attempt to mitigate its 
tediousness by change of job, associates, arid working place. 

c. Much of the work done by these classes of workers 
is of an extremely repetitive and routine character and 
therefore highly monotonous. This is particularly true of 
work done by girls, such as counting, sorting, pasting on 
labels, wrapping, inserting, packing. The boys do highly 
routine work on simple machines, such as drill and punch 
presses, and also in assembling small parts. 

d. Boys and youths lack definite aims and ambitions to 
hold them to a certain line of work or cause them to re- 
main with a particular firm. The Bureau of Labor Statis- 
tics found that only 185 out of 353 boy workers investi- 
gated, or 52.4 percent, and 120 out of 269 girl workers, 
or 44.6 percent, had definite ambitions. 15 Of the 185 boys 
who had definite ambitions only 56, or 30.4 percent, were 
ambitious along the line of work in which they were en- 
gaged. Only 17 of the 120 girls who possessed definite am- 
bitions were engaged in work which gave them an oppor- 
tunity for realizing their ambition. 16 

15 "Women and Child Wage Earners in the United States," v. VII, 
62nd Congress, 1st session, Senate Document, v. XCII, p. 190. 

16 "Women and Child Wage Earners," Ibid., p. 189. Concerning 
ambitions and definite aims among children, the 1916 Report of the 
Bureau of Vocational Guidance of the Chicago Public Schools 
says (p. 23) : "Each boy and girl who comes to the Vocational 
Bureau is asked what kind of work he would like to do. 'I don't 
know,' is the usual reply. It is astounding to find how few boys 
and girls have any definite idea of what they want to do, and how 
few parents seem to have any ambitions for their children. 'Any 
kind of a job will do,' children are repeatedly heard to say; or, 
'I want a nice clean job.' 'I have never worked. I don't know 
what I can do.' 'I want something easy.' 'I want a job where I 
can learn something.' " 



CAUSES PERTAINING TO THE MEN 217 

Definite ambition results in stability not only because it 
holds workers to the job in the face of difficulties and dis- 
couragements for the sake of realizing it, but also because it 
interests them in the work and hence tends to prevent the 
work from becoming onerous and monotonous. Workers 
who lack a definite interest in the job are likely to become 
dissatisfied on account of trivial matters which would be 
disregarded by one really interested. 

e. The younger element is not held by family responsi- 
bilities. If they are unable to obtain another job immedi- 
ately it is not of great consequence to them, but to a mar- 
ried man several weeks or even a week without a job is a 
considerable hardship. Many children enter industry not 
because of economic necessity but because they do not wish 
to go to school. 17 

4. Changes due to more attractive opportunities else- 
where. 

Little comment is required upon the changes due to more 
attractive opportunities elsewhere. In every period of 
prosperity, changes due to this cause become very numerous. 
The keen demand for labor in times of prosperity gives 
workers a much desired opportunity to attempt to improve 
their condition. All along the line there is an endeavor to 

"The reasons for leaving school given by 6,758 children to the 
Chicago Bureau of Vocational Guidance are classified in the 1916 
Report of the Bureau as follows : 

Necessity 2187 32.4 percent 

Earnings desired but not needed . . 1507 22.3 

Dissatisfaction with school 2025 30.0 

Preferred work to school 301 4.4 

Graduate (from 8th grade) 381 5.6 

Could not afford books to go to 

high school 231 3.4 

Other causes 126 1.9 

Total 6758 100.0 



218 THE TURNOVER OF FACTORY LABOR 

move up. The truckers and laborers seek simple machine 
work or bench work at which they are paid by the piece. 
The lower grades of semi-skilled hands seek higher pay- 
ing grades of work, helpers and handymen seek machines 
of their own, machine hands performing simple operations 
or making rough cuts seek jobs at more complicated opera- 
tions and at finishing. Some of the highest grade of semi- 
skilled hands undertake to do tradesmen's work. 

The effect of this moving up process upon the turnover is 
three-fold. A change is caused first by the workers' leaving 
their original jobs. The vacancies thereby created fre- 
quently are difficult to fill satisfactorily, especially during 
times of prosperity when good labor is scarce. Finally, the 
workers who leave because of more attractive opportunities 
often find they have undertaken something beyond their 
ability and either resign or are discharged. 

The wastefulness of this "try and try again" process of 
advancing to a better position is self-evident. The worker 
does not know in detail the nature of the job which he is 
obtaining nor does he know his own capacities. Never- 
theless it is the principal method- by which workers at the 
present time improve their condition on their own initia- 
tive. Some workers, it is true, obtain better jobs by ask- 
ing the foreman for a specific job which attracts them, and 
if the worker has a good record and the job is not too dif- 
ficult the foreman usually is willing to give him a chance 
when a vacancy occurs. The relations between men and 
management in most shops, however, are not such that this 
practice is very general and in the nature of things it can- 
not be general for the management cannot base promotion 
upon the requests of workers. The only adequate substi- 
tute for the present wasteful "try and try again process" is 
promotion by merit along systematically determined lines of 
advancement combined with systematic instruction in the 



CAUSES PERTAINING TO THE MEN 219 

new work. These methods are discussed in subsequent 
chapters. 

It should be noted that the difficulties which attend the 
change by a worker to more exacting work in another plant 
and which are responsible for the great wastefulness of this 
method of winning advancement are also a deterrent to 
changing, especially among the better class of semi-skilled 
workers. These workers are naturally interested only in 
work of a somewhat exacting nature as only such jobs pay 
enough to attract them. Because of their narrow train- 
ing their success at such work is uncertain. On account of 
their narrow training also, they find it more difficult in case 
of failure to obtain a job paying as well as the job they 
hold. The better grade of semi-skilled workers, moreover, 
are older than the less skilled and usually have families to 
provide for. For all of these reasons the better grade of 
semi-skilled workers are less attracted by better paying 
jobs in other plants than the lower grades and the common 
laborers, who perform tasks involving less proficiency, 
who run less risk of failing at the new job, and who in case 
of failure can more easily find work within their ability to 
do and paying the wages to which they are accustomed. 



PART IV 
METHODS OF REDUCING THE TURNOVER 



CHAPTER XII 

SURVEY OF WHAT A NUMBER OF ESTABLISHMENTS HAVE AC- 
COMPLISHED IN THE REDUCTION OF THE TURNOVER 

The means of reducing the turnover may be divided into : 
( i ) those which are effective only when applied by individ- 
ual employers or small groups of employers; (2) those 
which can be applied by individual employers effectively but 
are also effective when used by employers in general; (3) 
those means which absolutely require the cooperation of 
large numbers of employers or the effectiveness of which 
is greatly enhanced when applied cooperatively by large 
groups of employers. 

In the first class fall those methods which consist in 
making the plant a relatively desirable place to work — such 
as raising wages or reducing hours. As more plants adopt 
the same methods, the advantage of the few plants pos- 
sessing them is destroyed and their effectiveness in pro- 
moting stability is impaired. 

Into the second class fall many methods of regularizing 
employment and reducing sickness and accident rates, and 
all methods which eliminate causes of dissatisfaction among 
the workers, such as improved employment methods and 
methods of instructing new workers, improvement of physi- 
cal conditions of work, better methods of handling men. 
The methods of removing causes of dissatisfaction among 
workmen are enhanced in effectiveness in reducing the turn- 
over in so far as they render a particular plant a relatively 
desirable place to work, and to this extent, like methods of 

223 



224 THE TURNOVER OF FACTORY LABOR 

the first class, their effectiveness is diminished as other 
plants adopt them. 

Into the third class fall many of the means of regulariz- 
ing employment — such as united action within an industry 
to induce customers to place orders in advance, to eliminate 
extremes in styles, to prevent violent fluctuations in price 
and the resulting fluctuations in employment. 

The limits of this study render unfeasible discussion of 
methods of the third class which can be more advantageously 
analyzed in studies of unemployment. The problem of re- 
ducing the turnover will be analyzed here as it presents 
itself to the individual employer — as a problem how he, by 
independent action, can bring about a rather immediate re- 
duction in his turnover. All of the principal known means 
of reducing the turnover which are at the disposal of the 
individual employer will be analyzed regardless of whether 
or not their adoption by all employers would largely de- 
stroy their effectiveness. 1 

The problem of reducing the turnover is so much a pe- 
culiar problem to each particular establishment that the re- 
duction accomplished by any given plant is no indication 
of the reduction which may be possible in another. A sur- 
vey of the success which has attended efforts to reduce the 
turnover is desirable, however, because while it throws lit- 
tle light upon what reduction is possible in any particular 
establishment, it indicates what results in general are pos- 
sible. 

'We cannot assume that the effectiveness of higher wages or 
shorter hours in reducing the turnover would be entirely destroyed 
if the higher wages or shorter hours prevailed in all plants. To a 
considerable extent the turnover is a reaction of the workman 
against the dreariness and drudgery of his life. In so far as life 
is made more worth while to him by increasing his leisure time 
and by enabling him to live better, his stability may be increased. 
Concerning these matters we can only guess. 



THE REDUCTION OF THE TURNOVER 225 

In considering figures purporting to show reductions in 
the turnover, the reader must be reminded that changes in 
the stability of workmen may be due to two classes of causes 
— internal causes, due to conditions and relations within the 
plant over which the management has considerable control, 
and external causes, due to outside commercial and indus- 
trial conditions over which the management has little or no 
control. In order to judge the results which the manage- 
ment by changes within the plant has been able to accom- 
plish it is necessary to discount the effect of external con- 
ditions. By far the most important of these external con- 
ditions are changes in the labor market. The decided effect 
of changes in the demand for labor upon the turnover were 
pointed out in Chapter III, Section 1. These changes are 
constantly occurring and the stability of labor is constantly 
changing on account of them. It is, therefore, impossible 
to judge the effect of managerial policies upon the turnover 
by comparison of any two years unless the actual change in 
the turnover has been the opposite of that which the changes 
in external conditions during the period would be expected 
to produce. 2 If a comparison is made of the turnover rate 
for a series of years, the reduction should go on more or 
less continuously regardless of the ups and downs in the 
demand for labor. If the trend of the labor market during 
the entire period should be a weakening demand for labor, it 
would be extremely risky to attribute a decrease in the 
turnover to the management. 

3 That is, if there has been an increase in the demand for the 
particular kind of labor under consideration in the period in ques- 
tion, leading us to expect an increase in the turnover, and if the 
turnover in the plant has actually decreased, we are justified in 
crediting the decrease to whatever efforts the management may 
have made to decrease it. But if there was a decrease in the de- 
mand for labor such a conclusion would be very precarious. 



226 THE TURNOVER OF FACTORY LABOR 

The following figures furnished by an eastern laundry 
are a striking example of a substantial reduction in the 
turnover : 



Year 


Approx- 
imate 
size 
of 
force 


Total 
number 
quitting 


Percent 

of total 

quitting 

to 

force 


Number 

dis- 
charged 


Number 
leaving 
on ac- 
count of 
matri- 
mony 


Number 
resigning for 

reasons 
other than 
matrimony 


Percent of 
the estimated 
force resign- 
ing for reasons 
other than 
matrimony 


ion 
1912 
1013 
1914 
I9I5 


225 
250 
250 
250 
310 


378 
277 
184 
. 167 
140 


168.0 

no. 8 

73-6 

66.8 

45-2 


78 
109 
Si 
40 
43 


3 
7 

10 
9 

13 


297 
161 
123 . 
118 
84 


132.0 
64.4 
49.2 

47-2 
27.1 



The decrease in 1914 was undoubtedly caused in part at 
least by the depression. Notice, however, that 1913, which 
was a year of greater labor demand than either 191 1 or 
1912, has a decidedly lower turnover than either of those 
years. The turnover of 191 5 might be expected from ex- 
ternal conditions to be about the same as that of 1914, or 
probably somewhat larger. Actually it was decidedly lower. 

In 1912 this firm moved into a new building, a model 
for light and air, with the most modern devices for miti- 
gating steam and heat. During the entire period the firm 
was carrying on and perfecting its "efficiency" work. The 
average individual earnings for all workers in 191 5, the 
president tells me, were $3 per week higher than in 191 1. 
Each worker receives two weeks' vacation with pay. Dur- 
ing the period 1911-1915 the working day was reduced from 
8^2 to 8 hours, overtime was greatly reduced by dividing 
each day's work into lots, by scheduling the lots so that it 
is possible to tell at any moment whether a department is 
ohead or behind its schedule, by creating an emergency 
squadron trained to do all operations which is sent to help 
departments which are behind in their schedule, by regu- 
larizing the work by persuading customers to send in week- 
end deliveries instead of concentrating their deliveries at 



THE REDUCTION OF THE TURNOVER 227 

the first of the week. Two ten-minute rest periods were in- 
stituted so that the actual working time is 7 hours 40 min- 
utes. A factory committee to which the workers elect rep- 
resentatives considers complaints and makes suggestions 
for improvements. There is a lunch room which provides 
meals at cost. 

The most significant thing in this plant is the attitude of 
the management toward its employees. The management 
does much more for its employees than most employers do 
and probably more than would be considered good business 
if judged by the standard of the greatest possible profit to 
the management. The improvements which the manage- 
ment has made for the betterment of workers have been 
made not as palliatives for low wages, not in an endeavor 
to lull workers into satisfaction while the management takes 
advantage of them, but because of the fact that the man- 
agement has believed that in making them it was only run- 
ning the business as it should be run. The management 
does not pretend that it can show a return in dollars and 
cents for every extra expenditure made for the workers' 
welfare, but it maintains that the principle is wrong that 
the purpose of the business is simply to show the maximum 
possible return to the investors. The purpose of the busi- 
ness is to produce benefits for the workers as well as for 
the stockholders, and the business man who runs his busi- 
ness as he should, must take into account the right of the 
workers, as well as the right of the stockholders, to benefit 
from the business. As the president stated to me: "Our 
welfare work cannot be separated and considered as if it 
were a thing distinct from the business itself. My aim is 
to run the laundry business in the best way possible. To 
my mind this sort of thing is just part of the business. I've 
never been able to think of it in any other way. I don't 
like to think of it as something grafted on." The president 
remarked, however, concerning the unusually high wages 



228 THE TURNOVER OF FACTORY LABOR 



paid by his company that "if we didn't put the extra money 
in the envelopes, we wouldn't have it to put there." 

An eastern automobile manufacturer who has devoted 
special attention to reducing the turnover furnished me 
with the following figures indicating the progress made : 



Year 


Size 

of 

force 


Changes in labor force 


Percent of 

changes to 

whole number 

on payroll 


IQII 
1915 


934 
1,120 


Resigned 444 

Laid-off 158 

Discharged 86 

Total 688 

Resigned 237 

Laid-off 120 


47-5 

16.9 

9.2 

73-7 
21.2 
10.7 


Discharged 50 

Total 407 


4-3 
3<5.3 



In spite of the increase in the size of the force the actual 
number of changes for each of the causes substantially de- 
creased. 

We would naturally expect the turnover to be less in 191 5 
than in 191 1 on account of the smaller demand for labor. 
The reduction of the turnover, however, is the result of a 
consistent decline taking place throughout the period regard- 
less of market conditions. The automobile industry was 
also affected less by the depression of 1914 than most in- 
dustries and the demand for semi-skilled and skilled workers 
in the industry was good. 

This firm was engaged in the installation of "scientific 
management," resulting in better working conditions and 
better instruction of the men. The manager says that in 
his opinion the two greatest factors in the reduction of 
the turnover were the removal of the right of discharge 
from the supervisors and placing it in the chief factory 
executive and the regularization of work. The latter was 
accomplished according to the manager (1) by scheduling 



THE REDUCTION OF THE TURNOVER 229 

the product under an elaborate control system, coordinating 
production in all departments so that when output is in- 
creased it is uniformly accelerated and when decreased uni- 
formly retarded; (2) by providing extra bonuses to the 
selling force to increase sales in the winter months. The 
firm has a system of transferring men from slack to busy 
departments, their qualifications having been determined 
and recorded for the purpose. The average number of 
weeks worked by the force in 191 1 was 46.8, in 191 5 50.4. 
This excludes all shut downs for inventory and holidays. 
' An eastern printing and binding establishment furnishes 
me with the following data concerning the reduction accom- 
plished in its turnover from 1912 to 1915: 



Year 


Size 
of 

force 


All termina- 
tions of 
employment 


Resignations 


Lay-offs 


Discharges 




Num- 
ber 


%to 
force 


Num- 
ber 


%to 
force 


Num- 
ber 


%to 
force 


Num- 
ber 


%to 
force 


1912 
1913 
1914 
1915 


701 
562 
533 
436 


258 
177 
150 

77 


36.8 
31.5 
28.1 
17.7 


151 
81 
47 
36 


21.6 

14.4 

8.8 

8.3 


63 

56 
80 


9.0 
10. 
150 


44 

40 

23 

41(0) 


6.3 

7-1 

4-3 

9.4(«) 









(a) Includes lay-offs. 



Here again the smaller demand for labor in the last two 
as compared with the first two years distorts the figures. 
The decrease in the rate in 1913 as compared with 1912, and 
in 191 5 as compared with 191 4 indicates, however, that 
a real reduction due to internal causes was occurring. 

This firm began the installation of "scientific manage- 
ment" in 1910 and the installation was in process during 
most of this period. Great care is exercised in selecting 
help, each person usually being interviewed twice before 
being hired, the traditional foremanships have been abol- 
ished and intensive supervision of workers has been estab- 
lished by creating group supervisors each of whom has a 



230 THE TURNOVER OF FACTORY LABOR 

group of ten to twelve workers whom it is his duty to help 
and instruct but over whom he has no disciplinary authority. 
A service department has been established which has devel- 
oped welfare activities and which endeavors to maintain 
close contact with the workers, sees that proper assistance 
is rendered to those in need of special attention, handles 
difficulties, grievances, etc. Disciplinary authority is vested 
in the service department. Attempts are made to regular- 
ize employment by securing orders in advance. A large 
part of the business is in school books, the busy season for 
which falls in the summer months. Special efforts have 
been made to get books which can be published in the 
winter. A transfer system has been established and workers 
have been taught several operations to render them available 
for transfer. The close personal contact between the serv- 
ice department and the workers is a noteworthy feature of 
this establishment. 

An eastern street railway system has made the following 
substantial reduction in the turnover among motormen and 
conductors : 





Total 






Total 


Year 


motormen and 


Motormen 


Conductors 


motormen and 


conductors 


hired 


hired 


conductors 




hired 






leaving 


1908 


4,671 


1,364 


3,307 


.... 


1909 


4,835 


1,636 


3,199 


.... 


1910 


4,967 


1,722 


3,245 


.... 


1911 


4,501 


1,390 


3,iii 


4,153 


1912 


2,921 


922 


i,999 


2,840 


1913 


2,541 


801 


1,740 


2,363 


1914 


I,5H 


380 


1,131 


1,719 


1915 


1,443 


358 


1,085 


1,438 



An important factor in bringing about this reduction has 
been the development of cordial personal relations between 
the company and the men. This has been largely due to 
the superintendent of transportation, a man of exceptional 



THE REDUCTION OF THE TURNOVER 231 

personality who believes that loyalty can be obtained only 
by those in charge taking a genuine personal interest in the 
men. The genuine and intense personal interest which the 
superintendent of transportation takes in his men has af- 
fected the spirit of the entire organization. 

The power to discharge has been taken from the inspec- 
tors and division superintendents and vested in the super- 
intendent of transportation. A plan of handling grievances 
has been established by which the afternoon of a certain 
day of each week is appointed a regular time for men with 
complaints which the division superintendents have failed 
to adjust to appear before the superintendent of transporta- 
tion. Car barns have been provided with recreation facili- 
ties and an extensive system of social clubs, run by the men, 
has been developed. These clubs are very active and very 
successful. Applicants for motormen's and conductors' 
jobs are carefully investigated by special investigators be- 
fore being hired. Several years ago a system for securing 
new workers through the recommendations of men on the 
payroll was instituted. A close follow-up system extending 
over the first three months of every worker's employment 
has been established to assist in tiding new men over the 
critical breaking-in period. The business of this company 
is less in the summer than in the winter. As some of the 
men desire to work in the sea-side hotels or on farms, the 
company instituted a plan of granting such men as desire it 
a three months' leave of absence during the summer months. 
In 191 5, 281 men secured leave of absence. On January 1, 
191 1, this company inaugurated a welfare plan which with- 
out cost to the workers provides a sick benefit of $1 per day 
after the first week up to 90 days to all employed 30 days 
or more, insurance of $300 upon the life of each employed 
a year or more and a system of pensions. 

The Boston Elevated Railway reduced the number of 



2& THE TURNOVER OF FACTORY LABOR 

uniformed men leaving the company from 2,362 during the 
year ending March 31, 19 12 to 1,166 during the year ending 
June 30, 19 14, or 51.6 percent. 3 Since these figures were 
published, the company has still further reduced its turnover. 
During the year ending June 30, 191 5, 837 uniformed em- 
ployees left the service and during the eleven months end- 
ing May 31, 1916, only 674, or at the rate of 735 per year. 
The above figures include employees promoted, transferred, 
pensioned, and deceased as well as those resigning or laid- 
off. This reduction is noteworthy because it continued con- 
sistently during the increasing demand for labor in the latter 
part of 1915 and in 1916. Important factors in accomplish- 
ing this reduction were greater care in selecting and train- 
ing men and a reduction in the number of "extra" runs and 
split time runs by rearrangement of schedules. The number 
of "extra" runs was reduced from 585 to 460 and the num- 
ber of "extra men" by about 400, or 10 percent of the total 
number of men required by the schedules. 4 The "extra" 
runs are given to new men who must wait around the barns 
long hours in order to secure a run. This naturally in- 
creases the turnover among new men. 

The Philadelphia Rapid Transit Company brought about 
the reduction in the turnover among its trainmen shown by 
the figures on page 233. 5 

Following a strike in 191 1 wages were raised and a plan 
was adopted whereby 22 percent of the gross passenger 
receipts of the company are set aside in a separate fund 
for the payment of motormen and conductors and for the 

" Safety on the Boston Elevated Railway. Data presented to 
American Museum of Safety in competition for Anthony N. 
Brady Memorial Gold Medal, pp. 22, 23. 

* Ibid., p. 22. 

B Electric Railway Journal, v. XLII, p. 84, and v. XLIV, p. 22, 
and Prof. T. Conway, Jr., "Solving the Labor Problem in Phila- 
delphia," Electric Railway Journal, v. XLVIII, p. 968. 



THE REDUCTION OF THE TURNOVER 233 



Year 


Number of resignations 


Number of discharges 


1906 


3,226 


1,287 


1907 
1908 


3,922 
2,853 


i,374 
2,038 


I909 
I9IO 
I9II 
1912 
1913 


1,494 

3,787 

1,390 

913 

956 


i,o75 
2,376 
i,635 

855 
536 


1914 


337 


334 


1915 
I916 


175 
275 


142 
117 



payment of pensions and death benefits, thus enabling the 
men to share in the increased prosperity of the company. 
Under this plan numerous increases have been made in 
wages. Between 191 1 and 1914 the following increase 
took place : 6 



Duration of service 


Wage per hour for men of 
respective periods of service 


Percent 
increase 




In 191 1 


In 1914 




Less than 1 year 

1 to 2 years 


22|£ 

23 

23 

23 

23 

23 


25^ 

26 

27 

28 

29 

30 


13.6 
13.O 
17.4 
21.7 
26. 1 


2 to 3 years 


3 to 4 years 


4 to ^ vears 


5 years and over 


30.4 



By 191 6, the wages of new men had increased to 27 cents 
per hour and the wages of others one cent an hour above 
this for each year of service above one and up to five. 7 

A cooperative committee composed of representatives 
elected by the men, of the superintendent of transportation 
and of the division superintendents was created. One of 

6 Ibid., v. XLIV, p. 123. 

7 Prof. T. Conway, Jr., op. cit., v. XLVIII, p. 968. 



234 THE TURNOVER OF FACTORY LABOR 

the duties of this committee is to hear grievances. The 
schedule of runs was revised. The company determined 
the number of cars necessary to serve the public at dif- 
ferent hours, and on this basis the cooperative committee 
was permitted to work out the runs. The committee 
adopted as a basis that regular runs should constitute 9 
to 11 hours of service within 14 hours. Service formerly 
in some cases was spread over 15 hours or more. Arrange- 
ments were made to purchase uniforms directly from two 
wholesale houses under contracts approved by the coopera- 
tive committee, giving the men better uniforms at a lower 
price. In November, 191 2, a beneficial association was 
formed. The association pays sick benefits of $1 per day 
up to 100 days after the first week of illness and a death 
benefit of $150. It also operates a cooperative buying 
plan whereby members are enabled to make purchases at 
certain stores at a saving of 8 percent on standard regular 
prices. The entrance fee is 50 cents and monthly dues 25 
cents. The company contributes an amount equal to the 
entrance fees and the dues paid each month and bears the 
expense of the management. In 191 3 approximately 90 
percent of the eligible employees were members. 8 As a 
result of the improved relations between the men and man- 
agement, an attempt by the union to organize a strike in 
1 91 6 was a total failure. 

A southern street railway company, by more careful 
selection and training of men and a policy of showing con- 
sideration for the men and endeavoring to cultivate their 
good will, materially increased the permanency of the 
trainmen. The figures on page 235 show the results. 9 

In 1909 less than one seventh (13.5 percent) of the 
trainmen had served three years or more, but in 191 5 over 
one half (50.3 percent) had served for three years or over. 

8 Electric Railway Journal, v. XLII, p. 84. 

Personal letter from superintendent of transportation. 



THE REDUCTION OF THE TURNOVER 235 



Duration of service 


Percentage of trainmen in company's 

employ for specified periods 




1909 


1915 


One year or less 

One to two years 


58.2 
16.4 

11. 9 

5-5 

, i-5 

0.5 

6.0 


23 9 
14.7 
11. 


Two to three years 


Three to four years 


11. 7 

11. 


Four to five years 


Five to six years 


9.2 
18.4 


Over six years 





The turnover rate among trainmen in 1909 was 136.8 per- 
cent, in 191 5 46.2 percent, but this latter rate was influenced 
in part by the depression of that year. 

A case of turnover reduction remarkable because it has 
to do with a class of labor proverbially unstable is that 
accomplished by an eastern railroad among its section 
hands. Figures of the size of the turnover before the 
systematic efforts to reduce it are not available, but it is 
known to have been large. The substantial amount of the 
reduction, however, is indicated by comparing the turnover 
after the reduction had taken place with the turnover 
among the same class of help on other railroads. Figures 
from 14 roads located in the east, middle west and 
southwest show that they employed a total average force 
of 62,897 men in the maintenance of way and structures, 
the bulk of whom were engaged in maintenance of way. 10 
In the same years to which the figures of the size of the 
force refer, these roads lost 127,543 workers employed 
in maintenance of way and structures, a turnover rate of 
202.8 percent. The lowest turnover rate among the main- 

10 In the case of 7 roads the figures are for 1914, of 4 for 1913, 
and of 3 for the year ending June 30, 1914. The figures of ter- 
minations of employment and figures for variation in the size 
of the force on these roads given below are in every case for the 
same period as the figures of the average size of the force. 



236 THE TURNOVER OF FACTORY LABOR 

tenance of way and structures employees of the 14 roads 
was 81.5 percent. In only 3 cases out of the 14 was the 
turnover rate less than 100 percent. 

The road in question employed in 1914 an average force 
of 1,186 in the maintenance of way and structures and lost 
from this force during the year 491 men, a turnover rate 
of 41.4 percent or substantially one half the rate for the 
lowest of the group of 14 other roads. In 191 5, out of a 
force of 692 men engaged in maintenance of way and 
grounds alone, this road lost 243, or 35.2 percent. 

The systematic effort to reduce the turnover was begun 
as a result of the conviction that a trackman is not a 
common laborer but that his work requires special knowl- 
edge and proficiency and that it, therefore, should be done 
not by transient laborers who have little experience at it 
and know little about it, but by experienced specialists. 

When the plan of stabilizing the section force was started 
in 191 3, the force was reduced about 20 percent by dropping 
the least desirable men. The wages were raised from 15 
cents to iyy 2 cents per hour. The foreman's and sub- fore- 
man's wages were also raised. A particular effort was 
made to make the men understand that the company, in- 
stead of permitting the force to fluctuate with the seasons, 
intended to stabilize employment and that satisfactory men 
would have steady jobs. 

Under the old plan of work the period from March until 
July 1st, when tie renewals were being made, was a rush 
period. It was not unusual to have as many as 6 or 8 
extra men on a gang, who of course were dropped as soon 
as the renewals were completed. Under the new plan 
tie renewals are distributed throughout the year. The 
renewals begin early in the fall after the heavy summer 
traffic and continue as late as weather conditions permit. 
The superintendent of way and structures says that there 
is scarcely a month when ties are not laid. Considerable 



THE REDUCTION OF THE TURNOVER 237 

maintenance work is possible during the winter. Fence 
repairs are concentrated as much as possible during this 
period. During the winter the working hours are 9 per 
day, during the rest of the year 10. 

The effect of the regularization of work is shown by 
the variation in the size of the force and by the number of 
lay-offs in comparison with the variation in the force and 
the number fc>f lay-offs on other roads. During 1914 
the maximum number of men on the payroll of the mainte- 
nance of way and structures by this railroad was 1,222, the 
least number 1,134, a variation of 88, or 7.8 percent, of the 
minimum number on the payroll and 7.4 percent of the 
average number. On fourteen other railroads, however, 
the maximum force employed in the maintenance of way 
and structures was 86,983, the minimum 44,972, a differ- 
ence of 42,011, or 93.4 percent of the minimum force and 
66.8 percent of the average force. The least variation in 
the size of the maintenance of way and structure force of 
any of the other 14 roads was 32.6 percent of the minimum 
force and 27.6 percent of the average force. 11 The number 
of lay-offs among the maintenance of way and structure 
employees on the road in question was 113, or 9.5 percent, 
of the average force of 1,186. The total lay-offs on 13 
other roads 12 among maintenance of way and structure 
employees were 51,871, or 96.9 percent, of the total average 
forces of 53,552. The least percentage of lay-offs to 
average force on any of the 13 roads was 14.8 percent. 
Only 23.0 percent of all terminations of employment on the 
road in question were caused by lay-offs, but on the 13 other 
roads lay-offs constituted 45.6 percent of all changes. 

A second factor of tremendous importance in reducing 

"These figures in case of every road are for the same years as 
the figures of the average size of the force given above. 

"Figures for the number of lay-offs on one road were not 
available. 



238 THE TURNOVER OF FACTORY LABOR 

the turnover has been the loyalty to himself which the head 
of the department has been able to arouse and the pride and 
enthusiasm in the work which he has succeeded in instilling 
in the men. The first is a result of the deep personal in- 
terest which the head takes in his organization, the second 
a result of the high standards of workmanship upon which 
the management insists. The strong insistence upon high 
quality of workmanship is reflected in the high discharge 
rate. In 1914, 194 of the maintenance of way and struc- 
ture men, or 16.4 percent of the average force of 1186, 
were discharged. Thirteen other roads in the respective 
years for which figures were available discharged a total of 
5,748 men or only 10.7 percent of their average total force 
of 53,552 men. On only two roads did the discharge rate 
exceed the rate on this road. In 19 15 among the mainte- 
nance of way men alone there were 102 discharges or 14.8 
percent of the average force of 692. 

Mr. Richard A. Feiss gives the following figures show- 
ing the reduction in the turnover brought about in the 
Clothcraft Shops. 13 The figures refer to the numbers 
hired rather than to the terminations of employment. 14 

u "Personal Relationship as the Basis of Scientific Management," 
Bulletin of the Society to Promote the Science of Management, 
v. I, No. 6, p. 14; Annals of the American Academy of Political 
and Social Science, v. LXV, May 1916, on "Personnel and Em- 
ployment Problems," p. 52. 

14 Calculating the turnover on the basis of the number hired dur- 
ing a period such as this when the size of the force was decreasing 
is misleading, because the number of men who leave during such 
periods is greater than the number hired. It is impossible to dis- 
cover the number leaving from the above figures, because the num- 
ber on the payroll at the beginning and end of each year is not 
known, but only the average standing payroll for each year. Mr. 
Feiss states that the number of terminations of employment in 1914 
was 432, considerably more than the number of men hired, 291. 
Against this is to be balanced the fact that in 1910 and 191 1, when 
considerable reductions in force were evidently occurring, the 



THE REDUCTION OF THE TURNOVER 239 

Although the depression in 1914 undoubtedly had much to 
do with the very marked decline as compared with 1914, 
the steady reduction in previous years indicates the suc- 
cess of the firm's efforts. 



Year 


Average 
fiStanding Payroll 


New Hands 


Percent 


1910 
1911 
1912 

1913 
1914 


1,044 

951 

887 

874 
865 


1,570 
807 
663 

569 
291 


ISO.3 
84.8 

74-7 
65.1 
33-5 



During this period Mr. Feiss states that the weekly work- 
ing schedule was reduced from 54 to 48 hours and that 
the average individual weekly wages increased 37 percent 
— in themselves a sufficient explanation of the reduction in 
the turnover. 15 The firm gives great care to the selection 
of workers, usually requiring before hiring two interviews 
and a careful physical examination. Competent instruc- 
tion of new employees is provided by a special corps of 
instructors. Cases of failure to attain proper efficiency are 
intensively investigated. The service department learns 
of home conditions of employees and endeavors to estab- 
lish contacts with their homes by visiting the home of nearly 
every new employee. 16 All absentees are visited, as such 
visits often reveal cases in need of attention. Medical advice 
and aid is given employees. Meals are served at cost, in- 

number of terminations of employment also must have exceeded the 
number hired by substantial amounts. The figures, in spite of their 
unsatisfactory character, indicate a substantial reduction in the 
turnover. 

"Bulletin, p. 15; Annals, p. 56. 

"See an excellent article by Miss Mary Barnett Gibson, Em- 
ployment and Service Superintendent, in Annals of the American 
Academy of Political and Social Science, v. LXV, p. 277, for an 
account of this work. 



240 THE TURNOVER OF FACTORY LABOR 

door and outdoor recreation facilities are provided, and 
recreative and social activities fostered. The firm has regu- 
larized its work by pushing in its advertising staple numbers 
which can be made in the slack season. Workers are en- 
couraged to learn more than one operation and are paid a 
retainer while learning in order that fluctuations in the force 
may be lessened by transferring workers from slack to busy 
departments. 17 

The outstanding characteristics of the conditions in this 
shop may be summarized as follows : 

i. The care with which the betterment work has been 
conceived and carried out. 

2. The excellent economic situation of the workers and 
the fact that the betterment activities of the management 
are largely designed to better the economic situation of the 
workers rather than make them contented with unsatisfac- 
tory economic conditions. 

The Dennison Manufacturing Company has substantially 
reduced its turnover as the following figures furnished by 
Mr. P. J. Reilly, the employment manager, show : 18 

Percentage of resig- 
nations, layoffs, and 
Year dismissals to the 

force 

1911 68 

1912 61 

1913 52 

1914 37 

1915 28 

"This summary is based on Mr. Feiss's excellent article referred 
to above on "Personal Relationship as the Basis of Scientific 
Management." 

"Letter to the writer. Published also in "The Work of the 
Employment Department of Dennison Manufacturing Company," 
Annals of the American Academy of Political and Social Science, 
v. LXV, May 1916, on "Personnel and Employment Problems," 
P- 93- 



THE REDUCTION OF THE TURNOVER 241 

Among the methods used by this firm to reduce the turn- 
over were : 19 

1. Analysis of the requirements of each job. 

2. Careful selection of applicants. 

3. Systematic training of workers in some departments. 

4. Systematic promotion of workers. 

5. Careful investigation of the causes for leaving. 

6. Regularization of work by (a) obtaining orders far- 
ther in advance; (b) introducing new specialties to fill in 
gaps; (c) substituting stock items for specials; (d) 
scheduling work. 

7. Transfer of help from slack to busy departments. 

In 1897 only ?fl percent of the hat sizers of the John B. 
Stetson Company worked steadily during the entire year. 
A bonus of 5 percent was offered to those who worked 
steadily from Christmas to Christmas, and resulted in 50 
percent of the men working steadily during the entire year. 
The next year, when a 10 percent bonus was offered, 67 
percent of the men worked steadily; in 1901, when 15 
percent was offered, 88 percent remained; and since 1903, 
when 20 percent has been given, practically 100 percent 
of the men have worked throughout the year. 20 

"Before the convention of the National Association of Corpo- 
ration Schools, Mr. Reilly mentioned as methods by which the 
turnover was reduced: 

(a) Carefully studying the requirements of each job. 

(b) Analyzing the information furnished by each applicant. 

(c) Keeping a record of tangible values of each employee. 

(d) Carefully weighing the reasons given by employees for leav- 

ing service. 

The first he stated, in his opinion, was the most important. 
(Proceedings of the National Association of Corporation Schools, 
1915, P. 760.) 

20 Milton D. Gehris, Paymaster, "Employment Problems and How 
the John B. Stetson Company Meets Them," Annals of the Ameri- 
can Academy of Political and Social Science, v. LXV, May 1916, on 
"Personnel and Employment Problems," p. 157. 



242 THE TURNOVER OF FACTORY LABOR 

The plan has been extended to other classes of employees 
with success. 

An eastern piano manufacturer, by giving particular at- 
tention to his employment and personal problems, reduced 
his turnover from about 7,000 in the year 191 3 to 1,935 m 
1915. The force in both years averaged about 3,500. 

On January 1, 1913 a bonus plan was started in this 
plant under which a bonus of 2 percent of earnings is paid 
during the first year and 4 percent during the third year. 
The bonuses are paid in semi-annual instalments on Janu- 
ary 1 st and July 1st. The desirability of a stable force, 
which previously had not been emphasized, was made 
a matter of policy and its importance impressed by superior 
officials upon the superintendents and foremen. Foremen 
were required to report to the employment office the rea- 
son for each termination of employment. Monthly turnover 
reports were sent to the president. 

The employment manager of a Detroit automobile com- 
pany writes me as follows : 

"Four years ago the hire and fire system was in vogue 
with us. If a man was needed for a certain department 
the foreman would hire him; if needed no longer he was 
fired. Our 'turnover' at that time was about 300 percent 
to maintain a working force of six thousand. The next 
year the 'turnover' had been reduced to about 200 percent, 
an Employment Department having been looking into the 
matter of 'turnover' about six months of this year. In the 
year 19 14 the 'turnover' was 74 percent." 

Although this reduction was in part due to the depres- 
sion beginning late in 1913, there is no doubt that in great 
measure it was also the result of conscious effort. Hiring 
was done much more carefully by the employment depart- 
ment than by the foremen. No worker was permitted to 
be laid off, either temporarily or permanently, without the 
consent of the employment department. The employment 



THE REDUCTION OF THE TURNOVER 243 

department was able to transfer many workers no longer 
needed in their original positions instead of hiring new 
men. All men resigning were interviewed by the employ- 
ment department. By this means conditions in need of 
correction have been discovered and a wholesome check 
placed upon arbitrary and tactless methods of foremen. 
Finally the supervisor of labor has given particular atten- 
tion to instructing the foremen in methods of handling 
men. Each foreman was carefully observed, a private con- 
ference was held with him at which criticisms of his meth- 
ods and suggestions for improvements were given him. 

An important factor in the success of the work in this 
firm is the peculiar qualifications of the labor supervisor. 
Besides being a man of exceptional enthusiasm and of abil- 
ity to impart his enthusiasm to others, he is one of the oldest 
employees of the firm, senior in service to most of the fore- 
men, thoroughly familiar with conditions in the plant, and 
was well known to and popular with foremen before under- 
taking the employment work. He is a practical mechanic 
and production man and therefore trusted by the foremen 
to an extent one not a mechanic could not be, since they 
know that he understands their problems from their own 
point of view. 21 

In addition to establishments which in recent years have 
accomplished substantial reductions in their turnover, there 
are a number of establishments which have maintained 
their turnover at an exceptionally low level for a long 

21 The exceptionally high wages paid by the Ford Company render 
the effects of its profit sharing plan upon the turnover of less 
general interest than had the advance in wages been smaller, for 
the results were a foregone conclusion. The following table from 
Bulletin of the Bureau of Labor Statistics, No. 208, p. 115, on 
"Profit Sharing in the United States," and on figures in the Ford 
Times for February, 1917, p. 310, shows the effect of the increase 
in wages and the reduction in hours from 9 to 8 per day, which 
took effect January 1st, 1914. The figures given for the average 



244 THE TURNOVER OF FACTORY LABOR 

series of years. A notable instance of such an establish- 
ment is a large Chicago metal working plant. The turn- 
over in this plant for a series of years was as follows : 



Year 


Average force 


Number leaving 


Turnover rate 


1908 


3,576 


1,191 


33-3% 


IQOQ 


4,157 


1,583 


38.1 


I9IO 


5,OI9 


2,372 


47-3 


I9II 


4,9l6 


1,744 


35-5 


1912 


5,005 


2,107 


42.1 


1913 


5,227 


2,679 


51-3 


I914 


4,814 


888 


18.4 


1915 


4,768 


1,026 


21.4 


1916 


5,994 


4,206 


70.2 



The total number of men leaving during the period was 
17,796, the total of the average forces 43,476, giving an 
average rate for the entire period of 40.9 percent. 

This low turnover rate is especially remarkable because 
the firm is located in Chicago, an active labor market offer- 
ing many other opportunities for work in the same general 
line as the work in this plant and also because the work 
in large measure is hard and heavy, approximately one 
third of the men, according to the employment manager, 
being employed in foundries. Although this plant employs 
a large number of semi-skilled workers of considerable 
proficiency, the number of tradesmen employed is relatively 
small, being 10 percent of the entire force in 191 3. 

force in 1916 are not the average monthly force, but the average of 
the force in January, 1916 and 191 7, which was 23,342 and 42,432 
respectively. 



Year 


Average force 
employed 


Total 
leaving 


Turnover 
rate 


Resig- 
nations 


Lay-offs 


Discharges 


1913 
1914 

1915 
1916 


13,623 
12,115 
18,028 
32,888 


50,448 
6,508 
2,931 

7,512 


370% 

54 
16 

23 


39,575 
5,i99 
2,871 


2,383 

385 

23 


8,490 

926 

27 









THE REDUCTION OF THE TURNOVER 245 

The principal factors contributing to hold down the turn- 
over appear to be: 

1. A liberal wage scale slightly above the market. 

2. Payment of a bonus of 10 percent of the worker's 
earnings at the end of the year to all workers in service 
continuously throughout the year. 

3. Exceptional care in selecting help. The standards 
maintained by this company in hiring are among the 
highest in the country. Until the recent labor scarc- 
ity no applicant was hired until his references had been 
heard from. The employment department aims to hire 
no one for a job which will not pay him at least as 
much as he previously secured, and prefers to hire those to 
whom the job means an advance. The plan of having 
employees recommend desirable friends is highly developed 
at this plant and applicants so recommended are preferred. 
The company was one of the pioneers in medical examina- 
tion of applicants. 

4. Filling vacancies in so far as possible from within the 
ranks has long been the policy of this firm. The knowl- 
edge that there is a future for good workmen in the plant has 
exerted a strong influence upon the stability of the force. 

5. Steadiness of work. The force is not increased or 
decreased to meet temporary fluctuations of business. 
During the depression of 1914-1915 the hours of work 
were lessened to avoid laying off men. The steadiness of 
employment is shown by the small number of lay-offs, which 
in 1908 were 223, in 1909, 31, in 1910, 305, in 191 1, 296, 
in 1912, 73, in 1913, 188, in 1914, 27, in 191 5, 240, and in 
1916, 85. 

6. Payment of sick benefits without assessment of em- 
ployees. 

7. Medical advice and aid furnished without cost. 

8. Cleanliness and good ventilation of works which have 
long been a hobby of this firm. 



246 THE TURNOVER OF FACTORY LABOR 

9. The company has sought to bring honor to long con- 
tinued service by the organization of a "Veterans' League." 

10. The company pensions old and disabled employees, 
each case being considered on its merits, and provides for 
the dependent widows and children of employees. 

11. The attitude of the management towards the work- 
ers. The management has had the welfare of its men 
genuinely at heart. It has realized that the greatest need 
of workers is liberal wages and that the payment of liberal 
wages is the first and most important piece of welfare 
work. The employment manager states that in 55 years 
the company has had only one strike and that of short 
duration. The reputation of the company as a good em- 
ployer is such that the employment manager states he 
rarely has to advertise for help and that in times of labor 
scarcity he has had desirable men waiting for jobs whom 
he could not use, while other plants were asking him to 
send them men. 

Another example of a low turnover which has been 
maintained for years is furnished by an eastern textile mill. 
The following is the turnover rate since 1908: 



Year 


Size of force on 


Terminations of 


Turnover 


January i (a) 


employment 


rate 


1908 


3,3l6 


606 


18.3% 


1909 


3,230 


748 


23.2 


I9IO 


3,6ll 


909 


25.2 


I9II 


3,895 


999 


26.7 


1912 


4,064 


973 


23-9 


1913 


4,074 


i,35o 


33-i 


1914 


4,354 


1,152 


26.5 


1915 


4,583(&) 


1,679 


36.7 



(a) As figures for the average force employed except for 191 5 are not 
available the turnover is calculated on the basis of the number em- 
ployed on January 1st. This slightly overstates the turnover as the 
force was gradually increasing. 

(6) This figure is the average force for the year. 



THE REDUCTION OF THE TURNOVER 247 

Up to 191 5 the foremen had the right to hire and fire. 
The low turnover in this plant, therefore, occurred under 
the old fashioned hiring methods. One of the principal 
causes for the low turnover is that the establishment is 
located in a small town in which it is the only large indus- 
try. To leave the plant, therefore, meant in many instances 
to leave the community. Many of the workers enter the 
mill when young and never work anywhere else. They 
bring their children in when they are old enough to 
work. Stability has become a community habit. Nearly 
half (47.8 percent) of the force on June 1, 1915, had been 
employed five years or more and 28.0 percent had been em- 
ployed 10 years or more, a truly remarkable record. The 
firm has been liberal with its workers. It has built a 
model industrial town to improve their condition. 

A third example of low turnover long maintained is fur- 
nished by a middle western manufacturer of windmills, 
pumps, and gasoline engines. The turnover in this plant 
has been as follows: 



Year 


Average force 


Number leaving 


Turnover rate 


1906 


I20 


60 


50.0% 


1907 


145 


67 


46.2 


1908 


148 


20 


13-5 


I9IO 


180 


43 


239 


1913 


160 


57 


35-6 


1914 


162 


70 


43-2 


1915 


154 


25 


16.2 


1916 


l8l 


38 


21.0 


1917 


206 22 


6222 






This plant is located in a country town of about 3,000. 
Practically all of its help comes from the neighboring 
farms. It at all times has a waiting list and is able 
to avoid hiring chronic floaters. Because of the small size 
of the community in which the plant is located and because 
22 To October 10th, 1917 only. 



248 THE TURNOVER OF FACTORY LABOR 

of the small number of men hired, it is possible to learn 
something of each applicant before hiring him. 

The company has a very liberal profit-sharing plan which 
has been in operation since 1899. An inventory is taken 
each January 1st. 23 The amount by which assets exceed 
liabilities constitutes the net profits which are disposed of 
as follows: 

1. Five percent is paid on the preferred stock. 

2. Five percent is paid to the common stock. 

3. Five dollars is paid into the stock purchasing fund 
for every share of stock on deposit with the company under 
the arrangement described below. 

4. Ten percent of the remaining amount is paid into a 
sinking fund which can be used only to make up losses 
shown by the annual inventory and to bring dividends up to 
five percent when they have been less. 

5. The remaining 90 percent is paid to preferred stock- 
holders as extra dividends and to "honorary" employees as 
"remaining" wages. The amount received by each pre- 
ferred stockholder and each worker is proportional to the 
amount paid him as regular dividends or as ordinary wages. 
It may not, however, exceed the amount paid as the regular 
5 percent preferred stock dividend or the wages of work- 
ers. Excess over this amount goes to the stock purchasing 
fund. Ninety percent of extra dividends and "remaining" 
wages are paid in common stock, 10 percent in cash on 
the following, December 1st. 

An "honorary" employee — entitled to receive "remain- 
ing" wages, is one who has been continuously in the employ 
of the company for two years and who has agreed to de- 
posit with the company all stock he may receive as "remain- 

28 In order to minimize the effect of changes in market prices 
materials are not inventoried at market prices but midway between 
moderate market prices and the prices put on the same article in 
the last inventory. 



THE REDUCTION OF THE TURNOVER 249 

ing" wages. The owner agrees when he sells the stock to 
sell it to the company at the market price less all indorse- 
ments made on it, that is, less the $5 annual installments 
per share paid into the stock purchasing fund as mentioned 
in (3) above. 24 

The regular wages paid by the company in the shop in 
191 3 averaged 25.36 cents per hour, in the office 43.5 cents 
per hour. 25 The total amount of regular wages paid em- 
ployees participating in the plan from its inception in 1899 to 
December 31, 1914 was $772,246. 26 The total dividends 
paid to employees during this period were $619,677 or 80.4 
percent of the wages paid. 27 The lowest dividend paid 
was 28.5 percent of the earnings in 1904. Fourteen out 
of 16 times the dividend exceeded 60 percent of the earn- 
ings of participants, 10 times it exceeded 75 percent of 
their earnings. 28 On December 31, 1914, employees held 
67.8 percent of the common stock, which was 54.1 percent 
of the entire capitalization. 29 The directors of the com- 
pany are employees, about half from the office and half 
from the shop. 

The effect of the plan in creating a permanent force is 
shown by the exceptionally large proportion of the force 
in service for a number of years. Of 154 men on the pay- 
roll during 191 5, 120, or 77.9 percent, had been employed 
2 years or more, 101, or 65.5 percent, 3 years or more, 81, 
or 52.6 percent, 5 years or more, 42, or 27.3 percent, 10 

24 A more detailed description of the plan is to be found in 
Emmet, "Profit Sharing in the United States," U. S. Bureau of 
Labor Statistics, Bulletin No. 208, pp. 37-44. 

25 Letter from the company. 

26 Emmet, "Profit Sharing in the United States," p. 22. 

27 Emmet, Ibid., p. 22. 

28 Mr. Emmet's description of the plan gives the amount of divi- 
dends paid, the number of participants and the amount of earnings 
of participants for each year. 

29 Emmet, Ibid., p. 44. 



2$o THE TURNOVER OF FACTORY LABOR 

years or more, and 23, or 14.9 percent, 15 years or more. 
The average duration of service of the force at the end of 
191 5 was approximately 6.4 years. 30 

30 This is an underestimate which was made in the following man- 
ner: It was known from figures furnished the writer by the com- 
pany, how many of the participating employees in 1915 also par- 
ticipated in each of the preceding years since the inception of the 
plan. Thus of the 101 participating employees in 1915, 19 also had 
participated in 1899, 23 in 1901, etc. As two years' service was 
necessary to entitle an employee to participate in the profits, the 
19 employed in December, 1915, who participated in 1899 must have 
been employed at least 18 years. This was assumed to be the 
duration of their employment, although many of them undoubtedly 
had been employed longer. Those first participating in 1900 who 
were still employed in December, 1915, must have been employed 
at least 17 years and this was assumed to be the duration for them, 
and so on for other years. The average duration of service of 
those who did not participate in 1915 because employed less than 
two years was assumed to be one year. If this is slightly greater 
than the actual average, it is more than compensated by the under- 
estimate with respect to the other employees. 



CHAPTER XIII 

THE FUNDAMENTAL PREREQUISITES FOR THE REDUCTION OF 

THE TURNOVER I ATTRACTIVE WAGES, STEADY WORK, 

AGREEABLE WORK, AND SHORT HOURS 

The four most important features of a job to the average 
factory workman are : 

1. The wages. 

2. Its steadiness. 

3. Its physical and nervous demands upon him. 

4. The hours. 

As these four overshadow all other features of the job 
in importance to the workman, making the work attractive 
in these four respects must necessarily form the foundation 
of attempts to reduce the turnover. Without this founda- 
tion's being laid, the most careful selection of employees by 
a competent employment department, the most thorough in- 
struction by a capable training department, generous treat- 
ment by a considerate management, and elaborate welfare 
institutions will come to naught. Men will not remain at 
work because of incidental attractions when matters of 
fundamental importance are unsatisfactory. 

Rendering the work attractive in these four respects re- 
duces the turnover not only because it reduces the number 
of resignations on account of dissatisfaction but also be- 
cause : 

1. A more ambitious and intelligent grade of labor is 
attracted, a class which is looking for good conditions and 
appreciates them. 

2. When the job is attractive, men consciously make a 

251 



252 THE TURNOVER OF FACTORY LABOR . 

greater effort to acquire proficiency at it and are more care- 
ful to avoid being discharged, because they value the job 
more highly. 

3. When disagreeable features of work are removed or 
minimized, men unconsciously do more and better work and 
are consequently less likely to be dissatisfied with their earn- 
ings. It is an elementary psychological fact that disagree- 
able stimuli decrease working capacity and that pleasant 
stimuli enhance working capacity. 

In order to render the work as attractive as possible with 
respect to wages, steadiness, physical and nervous strain, 
and hours, four steps should be taken : 

1. An individual and detailed investigation should be 
made of every job in the plant in order to learn precisely 
what unattractive features exist either in the operation it- 
self or in the working conditions. The unattractive fea- 
tures found should be eliminated or mitigated in so far as 
profitable. 

2. An investigation should be made of the length of 
working day in which the greatest amount of work at each 
job can be produced over a long period of time. On the 
basis of the results arrived at for the different jobs and on 
the basis- of the working day in other establishments in the 
community and of the advantage to be gained or lost by 
setting the working day below or above the prevailing 
length in the community, the most advantageous length of 
working day for the entire plant or for the separate de- 
partments should be determined. 

3. A systematic program should be adopted for regular- 
izing employment and for meeting unavoidable fluctuations 
of employment. 

4. A careful investigation snould be made of the proper 
wage for each job. This should take into account the 
agreeableness and disagreeableness of the job, the skill and 
responsibility involved, the wages paid for similar work in 



PREREQUISITES FOR THE REDUCTION 253 

the community, the advantages to be gained or lost by the 
setting of a rate higher or lower than the rate prevailing in 
the community. 

1. Elimination or mitigation of unattractive features in 
the process of work or in working conditions. 

This includes the removal or mitigation of fumes, steam, 
dust, smoke, nauseating odors, the provision of fresh air, 
regulation of temperature and humidity, provision of 
proper light, relief from physical and nervous strain. 

Because the desirability of mitigating unattractive fea- 
tures in the processes of work and in working conditions is 
obvious, few precise data exist in regard to the benefits of 
improved working conditions. Precise data are desir- 
able, however, in order to show concretely and definitely 
the benefits of expenditures for these purposes. 1 

1 Concerning the relation of temperature to efficiency, Professor 
Ellsworth Huntington has published most interesting data in his 
book, Climate and Civilisation, New Haven, Yale University Press, 
1915. Professor Huntington's figures are based on the average 
hourly earnings of some four hundred piece workers in two Con- 
necticut factories which used a bonus system, of 65 girls pasting 
labels in a North Carolina tobacco factory, of 240 operators in two 
South Carolina cotton factories making coarse goods where the 
temperature and humidity did not affect the mechanical part of the 
work to any great extent, of 400 cigar makers at Jacksonville, 
Florida, and 2,300 cigar makers at Tampa, Florida (all on piece 
work). In the case of the Jacksonville and Tampa cigar workers, 
it was impossible to calculate the precise hourly earnings because 
the working hours were not regular. It was, therefore, necessary 
to make an estimate of the hourly rate based on the estimated 
working hours. 

In every case the earnings show a sharp decline from the spring 
level as hot weather comes on and a rise in the fall as cool 
weather returns. The summer depression is more pronounced and 
of longer duration as one goes south. Measuring the summer 
depression by the difference between the maximum for the year 
and the minimum for the summer, the summer depression varies 
from nearly 5 percent in Connecticut to nearly 7 percent in the 



igi i 


1912 


1913 


100 


8 


2 


100 


50 


34 



254 THE TURNOVER OF FACTORY LABOR 

The principal means of reducing the physical and nerv- 
ous strain of work are : 

I. Motion study. The elimination of waste motion and 
the reduction of the operation to the fewest, simplest, easi- 

case of the Jacksonville carpenters and 10 percent in the case of 
the Tampa cigar makers. Among the 65 girls at the Winston- 
Salem, North Carolina, tobacco factory the difference was 6 percent, 
in a cotton factory at Columbia, S. C, 5 percent, in a cotton fac- 
tory near Augusta, Georgia, 5 percent (pp. 66, 67, and 70). 

The effect of extreme heat is indicated also by the following 
figures published by Professor Huntington, which show the effect 
of selected hot periods on output in the Connecticut factories for 
several years. The maximum heat and deficiency in work are repre- 
sented by 100 and in the other years by proportional values (p. 90) : 

1910 

Deficiency in work 58 

Severity in heat 52 

It will be seen that the deficiency in work increases much more 
rapidly than the severity of the heat after the heat reaches a given 
point. Analysis by Professor Huntington of the productivity of 
300 men in two Connecticut factories from 1910 to 1913 and of 196 
girls in one Connecticut factory from 191 1 to 1913 according to the 
mean temperature of the day, all days with a given temperature 
being averaged together, shows that after the temperature passes 
an optimum of about 59 to 65 degrees, the productivity falls off 
rapidly (pp. 98, 99). 

It goes without saying that the conditions which impair the 
worker's productive efficiency tend to produce dissatisfaction with 
the job and increase the turnover. The writer is indebted to the 
Yale University Press for permission to summarize Professor Hunt- 
ington's data. 

Professor C. R. Henderson (Citizens in Industry, p. 101) cites 
interesting evidence of the good results of improved ventilation. 
The Germania Insurance Company of New York, in 1910, had 80 
clerks in one office. Previous to the proper ventilation thereof 10 
percent were absent on account of illness. Proper ventilation 
reduced absences due to this cause to practically nothing. The 
United States Pension Bureau, by going into well ventilated and 
well lighted rooms, reduced the days of illness among the force 



PREREQUISITES FOR THE REDUCTION 255 

est motions possible, and the instruction of the operative in 
this way of doing the work. 

2. Adjustment of the rate of doing the work to the rate at 
which the greatest output can be produced. There is a best 
rate for doing work, a rate at which the most can be accom- 
plished (by most men) over a stretch of time and to exceed 
which means a loss in output. The best known example of 
the adjustment of the rate of doing the work is the deter- 
mination by Mr. Taylor of the best shovel load for various 
shoveling operations. 2 Miss Tarbell cites a case from an 
installation of "scientific management" in a textile mill 
where it was found that the workers could do more and 
better work with 600 spindles and 6 sides than with 800 
spindles and 8 sides and with the rate of revolution reduced 
from 8,800 to 7,6oo. 3 

3. Adjustment of the working day to the most favorable 
length. This will be discussed below in section 2 in connec- 
tion with the adjustment of the hours of work. 

4. Rest periods. The time required for recuperation 
from fatigue increases more rapidly than the increase in 
fatigue. Recuperation should take place, therefore, at 
frequent intervals before great fatigue has accumulated. 
Taylor's example of pig iron loaders is the classic example 

from 18,736 to 10,114 days a year, in spite of the fact that the 
force was greatly increased. In the printing establishment of Mr. 
T. J. O'Brien, a new ventilation system was installed by the in- 
sistence of the New Jersey State Department of Labor. Formerly 
men left work on busy days in an exhausted condition and sick- 
ness was common. Since the installation of the ventilation system 
the men leave work on all days in an entirely different condition 
and sickness has been very much reduced. The errors in type 
setting and in time required for making corrections have been 
greatly reduced. 

2 F. W. Taylor, Principles of Scientific Management, pp. 64-77. 

8 American Magazine, February, 1915, p. 28. 



256 THE TURNOVER OF FACTORY LABOR 

of this method of reducing fatigue. 4 Rest periods are now 
extensively used with excellent results. 

5. Improved and additional tools, machinery, and equip- 
ment to give the worker more and better mechanical aid. 
Careful study of operations will reveal many opportunities 
for improvements of this sort. 5 

6. Helpers. 

It may be impossible to eliminate entirely the disagree- 
able and severe features of the work. In such cases it is 
often possible to mitigate their effects in various ways. 
For example, if the men must unavoidably work in heat, 
steam, wet, or dirt, showers and lockers for a change of 
clothes can be provided. It may be desirable to allow 

* F. W. Taylor, Op. Cit., pp. 57-64. 

5 An interesting example of relief of fatigue and a great increase 
in output by several successive mechanical improvements is given 
by Mr. Harold E. Barr in the Iron Age, v. XCV, p. 298. It is a 
typical illustration of the great possibilities of fatigue mitigation by 
the development of mechanical aids. The example is from the 
Studebaker plant. The operation was cutting down the size of 
cams, "necking them in." There were 13 cams on the cam shaft 
which were done at a time with two sets of tools, one a set of 7, 
the other of 6. The tools were fed into the work by a screw and 
hand wheel. It was found that the rate of production for the last 
three hours of the day fell off perceptibly. Investigation indicated 
that the workman became unnecessarily tired from shifting the 
hand wheel from one set of tools to the other. The hand wheel 
was shifted for every cam shaft turned from one feed shaft to 
the other. The workman's hands became slippery with oil and 
considerable strength was required to grip the wheel tight enough 
to feed the tools in as fast as desired. 

The handwheel was changed from iron to aluminum, reducing 
its weight 2 lbs. The output increased from 80 or 83 pieces a day 
to 96 pieces per day. Handles were then inserted on the wheel to 
give a better grip. Output increased to no to 113 pieces. A 
pneumatic chuck then replaced the dog which had had to be 
changed from one shaft to another, saving time in putting in the 
work. Production increased from 113 to 196 pieces per day. 



PREREQUISITES FOR THE REDUCTION 257 

men exposed to heat, wet, or dirt to quit a short time before 
the others in order that they may be ready to leave the 
plant with the others. Workers engaged on jobs involving 
great physical exertion may be relieved by being shifted 
at regular intervals to easier work. This has been prac- 
ticed in the automobile industry with the men who put 
the tires on the rims. Fatigue may be mitigated also by 
more careful hiring of men, hiring only those of ex- 
ceptional strength or otherwise particularly adapted for 
doing the work with the least fatigue. Monotonous work 
may be mitigated by hiring unintelligent immigrants. 

2. Adjustment of the length of the working day. 

In considering the adjustment of the length of the work- 
ing day a clear distinction should be made between : 

1. The physiological limit upon working capacity, the 
amount of work that a man could do continuously without 
injury to health were he willing. 

2. The psychological limit upon his output, his willing- 
ness to exert himself. 

In determining what is the most desirable length of work- 
ing day the management of course desires information on 
the first point. The physiological limit is the extreme limit 
which should be demanded of workers. Some day we 
may perhaps have information concerning the rate of work 
and length of working day in which the greatest amount 
of work of a given severity and of a given character can 
be done by men of different strength without impairment 
to health and such data will be of great aid in adjusting the 
hours of work. 6 At present we have no accurate informa- 
tion upon the limits set by health to speed of work and 

6 "Scientific management" began by calling on engineering to 
solve its problems. Now it is beginning to make extensive de- 
mands upon psychology. The next science which it is likely to call 
on is physiology, for which there is an extensive field of investiga- 
tion in connection with managerial problems. 



258 THE TURNOVER OF FACTORY LABOR 

length of working day and must simply guess at a reason- 
able limit. The numerous cases in which a greater output 
has resulted from a reduction of the working day by no 
means prove that the longer day was a less efficient length 
of day from the physiological standpoint. It is a well 
known psychological fact that men who are happy and 
satisfied are willing to exert themselves more and that their 
cheerful and contented state of mind causes them also 
unconsciously to exert themselves more and to show more 
enthusiasm in whatever they are doing. To a great degree, 
therefore, the increased output in the shorter day may be 
due to the psychological rather than the physiological effect 
of the shorter day, to the greater enthusiasm and expendi- 
ture of energy which is typical of a contented man. In a 
similar state of mind under the longer day the worker might 
work at the same rate throughout the longer day without 
injury to his health. 7 

T It is undoubtedly true that the exertion made by a substantial 
majority of workers of all grades is decidedly less than it would 
be possible for them to make for a similar period of time without 
impairment of their health. The cases of no decline in production 
or of increased production following a reduction of hours instead 
of proving what they are often used to prove, that men had been 
over-worked, create a strong indication that the men had not 
been exerting themselves to the full extent that was possible with- 
out injury to themselves. In order to prove that the longer day 
exceeded the physiological optimum evidence of the effect of the 
shorter hours upon the workers' health, such as time lost on 
account of sickness, should be cited. Such statistics to be of 
value must cover the entire year, as the sickness rate is much 
greater in winter than in summer, or must err on the side of 
conservatism by showing a lower rate in winter than previously 
had prevailed in summer. There is great variation in the sickness 
rate from year to year caused by the character of the weather. 
This factor and also the presence of epidemics in either year and 
changes in working conditions must be allowed for. If possible 
the comparison should be made between several years before and 



PREREQUISITES FOR THE REDUCTION 259 

In deciding upon the length of day the psychological 
rather than the physiological factor is likely to be determin- 
ing. The management must decide whether the satisfac- 

after the reduction in hours, as comparisons of sickness statistics 
between two single years are very unsatisfactory. 

The investigations of the British Health of Munition Workers 
Committee, while showing clearly that there is an optimum work- 
ing day which cannot profitably be exceeded, also indicates that 
this optimum is higher than has been contended by advocates of 
the eight hour day. The evidence of the committee tends to 
show that 60 hours per week is nearer the physiological optimum 
than 48. The following data are taken from the reprints of the 
Report of the British Committee by the U. S. Bureau of Labor 
Statistics in Bulletin No. 221 ("Hours, Fatigue and Health in Brit- 
ish Munition Factories"). Page references are to the Bulletin. 
The British figures, however, being for short periods only, do not 
show the long run effects of different lengths of working days. 

Women engaged in moderately heavy work (100 engaged in 
turning fuse bodies). 

The evidence is insufficient to establish anything beyond the fact 
that more than 55 or 60 hours per week decreased output. The 
shortest single week when conditions were typical was that of March 
12, and the output per hour in this week exceeded that of any other. 
Whether still shorter hours would lead to a further increase there 
is no evidence to indicate. {Bulletin No. 221, p. 2Z-) 

The decidedly greater amount of absence among the women en- 
gaged in heavy lathe work compared with those engaged in lighter 
occupations, indicates strongly that the heavy work was over- 
taxing (pp. 34-35). 

Twenty-one women engaged in light labor, milling screw thread 
on fuse bodies. 

The maximum hourly output was attained when working 59.8 
hours per week. The maximum daily output occurred when the 
weekly hours averaged 63.7. Two weeks of 39.4 hours each at 
Easter showed less hourly output than two 59 hour weeks. This 
possibly was due to less application caused by the approach of the 
holiday. Otherwise data on shorter working weeks is lacking 
(P- 37). 

Twenty-seven men engaged in heavy labor "sizing" fuse bodies. 

The greatest hourly and total production occurred in weeks 



2<5o THE TURNOVER OF FACTORY LABOR 

tion and contentment which the men would derive from a 
working day shorter than the day prevailing in the corn- 
averaging 56.4 and 56.2 hours. In a period of six weeks averaging 
51.1 hours per week hourly production was less (pp. 38-39). 

Nine boys engaged in heavy work sizing base plugs. 

The maximum hourly production occurred in 3 weeks averaging 
60.9 hours, exceeding substantially the hourly rate of output in 11 
weeks averaging 57.0 hours per week (p. 39). 

Men engaged in moderately heavy work. 

Twenty-three men boring the powder chamber produced substan- 
tially the same per hour in 60 hour weeks as in 48 hour weeks 
(p. 40). Twenty-two men finishing, turning and forming 3-inch 
shells produced less per hour, but more per day, when working 
60 hours per week. The greater hourly productivity in the shorter 
weeks in this case is said to be due in part to the greater experi- 
ence and greater proficiency of the workers. But, even disregarding 
this, more was produced per week of 60 hours than of 52 hours 

(p. 4i). 

Men and youths engaged in light labor. 

Eighteen men engaged in rough turning shells produced practi- 
cally the same hourly output whether working 49, 53 or 64 hours 
per week. When 20 operatives on a night shift had their hours 
increased from 47^ to S3 X A for one week and then to 67 hours for 
two weeks their output was 99, 97, and 96 per hour in the 3 weeks 
respectively, that of the preceding 3 weeks being taken as 100. 
"There is little doubt, therefore," the report concludes, "that these 
operatives could have worked longer weekly hours than 64 or 67 
without greatly diminishing their hourly output, and so have 
attained a greater total output" (p. 42). 

Seventeen youths, 15 to 18 years of age, engaged in boring out 
the top caps of fuses by means of semi-automatic machines, pro- 
duced within 2 percent as much per hour during 6 weeks averaging 
70.9 hours each as during 8 weeks averaging 59.4 hours each. The 
hourly output during the 8 weeks averaging 59.4 hours was only 8 
percent greater than the hourly output during 5 weeks in which 
the hours averaged 75.6 percent. The weekly output during the 5 
long weeks exceeded the weekly output of the 8 weeks averaging 
59.4 hours by 17.8 percent (p. 42). The slight diminution in hourly 
output, in spite of the long continued long hours, indicates that 
the physiological optimum for this sort of work is extremely high. 



PREREQUISITES FOR THE REDUCTION 261 

munity would lead them to produce at a sufficiently more 
rapid rate so that this gain combined with the gains due to 
the ability to secure a better grade of workers and due 
to the greater permanency of force will render a shorter 
day profitable. No tests by which the results of a reduc- 
tion can be predicted exist. There is only abundant ex- 
perience to show that whether the cause be physiological 
or psychological, a reduction in the working day has often 
proved profitable. 8 

8 Miss Goldmark in her work Fatigue and Efficiency, pp. 134-155, 
describes in some detail some of the classic instances of increased 
production under reduced hours, such as those of the Engis Chemi- 
cal Works in Belgium, Zeiss Works in Jena, Mather and Piatt in 
England. 

In the Survey, v. XXXVI, p. 7 (April 1, 1916), Miss Ruth Picker- 
ing gives the views of a number of manufacturers who adopted the 
eight hour day during the eight hour movement in the latter part 
of 1915 and the early months of 1916. To what degree the views 
of these manufacturers are based on an accurate statistical com- 
parison of output before and after the reduction and to what degree 
simply upon impressions is not indicated. The views are extremely 
interesting. The Sperry Gyroscope Company, of Brooklyn, is 
quoted as follows (p. 7) : "Less discontent and greater relative 
efficiency, with practically the same production in forty-eight hours 
as formerly." Another Brooklyn company wrote that the change 
"has resulted in increasing both the quality and quantity of the 
work of the men per hour." The Universal Machine Company of 
Baltimore said that it believed the reduction in the end will mean 
"finer work, increased output per hour, on account of the men 
being happy and contented." Another company writes: "While 
the time that has elapsed has been quite short, we feel increased 
effort has resulted, partly due to appreciation on the part of the 
employees of the fact that they now received 54 hours' pay for 48 
hours' work, and partly through the fact that the higher rate of 
wages has improved the quality of the workers; that is, numerous 
high grade mechanics who have been earning less money elsewhere 
have come to us. . . . Immediately after the change went into 
effect there was naturally a considerable decrease in output, but 
this has partly been made up since that time through the increased 



262 THE TURNOVER OF FACTORY LABOR 

The problem of adjusting hours of labor includes the 
problem of reducing overtime. Many employers say that 

effort mentioned above." Another firm: "The men seem very well 
contented and we seem to be getting work out just as rapidly as 
with the ten-hour day." Still another writes: "We believe it 
possible to get a better class of mechanics and at the same time 
improve the efficiency of the workmen." The Vitaphone Company, 
Plainfield, N. J., wrote: "Our results were at first decreased out- 
put and a slight increase in efficiency, but we feel that it will be 
only a question of time before we get both increased efficiency as 
well as increased output." Concerning the Remington Arms and 
Ammunition Company, of Bridgeport, Miss Pickering writes: "As 
output previous to the adoption of the eight hour day was very 
small, the exact difference is difficult to determine, but experience 
has since led the company to believe that the output has been in- 
creased by the change. . . . They believe that the eight hour day 
provides increased efficiency in the quality of the work performed 
and adds to rather than diminishes the quantity of the out-turn." 

The effects of a reduction in hours in the drop forge shop of 
the Cleveland Hardware Company are described in the Iron Age, 
v. XCV, pp. 537-538 (March 4, 1915). The practice up to January 1, 
I 9 I 3> was for the two shifts to work 60 hours each, the day shift 
10 hours 6 days, the night shift 12 hours 5 days. The day men were 
allowed to work overtime. After January 1, 1913, no overtime 
work was permitted on day work. Practically the same men and 
equipment turned out the largest output in the history of the shop. 
The result was so satisfactory that a change to an 8 hour day 
was decided on in 1914. The men were said at the time of the 
article to be doing as much in 8 hours as they formerly had done 
in 10. 

One of the most interesting of all cases of hour reduction, not 
only because of the large size of the reduction but especially be- 
cause the work involved was intermittent so that the workers had 
opportunity for considerable rest and therefore might be expected 
to be uninfluenced by the shorter day, is the reduction from 12 to 
8 in the hours of the open hearth furnace workers and boiler room 
force of the Commonwealth Steel Company. The results were 
described by President R. A. Bull before the American Foundry- 
men's Association (see Foundry, v. XL, pp. 461-462; Engineering 
Magazine, v. XLIX, p. 60). The men had not asked for the change 



PREREQUISITES FOR THE REDUCTION 263 

their men desire overtime because they desire the oppor- 
tunity to make the extra money. A clear distinction must 

or for an increase in wages and no neighboring plant contem- 
plated a change. No inducement was offered for more efficient 
service except that in anticipation of decreased earnings wages were 
increased from 14 to 22 percent. The men did not know that com- 
parative records would be kept. There was a meter on each fur- 
nace to record the fuel consumption, a magnetic recorder to indi- 
cate the frequency with which furnace burners were reversed, a 
system for weighing the extra pig iron used in heat, a recording 
pressure gauge to show the steam pressure in the boiler room, and 
finally chemical analysis and physical tests to determine relative 
quality. The following comparison of the efficiency of the open 
hearth furnace workers for four weeks before and after the change 
indicates less wastage and more efficient and attentive work: 



Average amount of extra pig iron charged per 

heat, lbs 

Average amount of oil consumed per heat, 

gallons 

Average amount of fuel oil consumed per 

ton of metal charged 

Average number of cracked castings per heat, 

percent 

Average of longest intervals between reversals 

of burners during 12 hour periods, number. 



12 hour day 


8 hour day 


556 


424 


I.275 


1,138 


55 


49 


0.49 


0-37 


28 


26.7 



The record continued to improve, according to Mr. Bull, but 
other factors entered in. 

The effect in the boiler room, as shown by comparing the four 
weeks before and after the change, was: 



hour day 



Boiler pressure below no pounds 
Boiler pressure below 105 pounds 
Boiler pressure below 100 pounds 




The boiler labor was done in materially less man-hours under 
the 8 hour day. Under the 12 hour day the day shift consisted 



264 THE TURNOVER OF FACTORY LABOR 

be made between the willingness to work overtime occa- 
sionally and the desire for continuous overtime work for 
several weeks or months. To isolated instances of over- 
time work probably most workers do not object, for the 
extra money is welcome and the inconvenience is slight. 
Overtime work if continued without interruption, however, 
quickly becomes onerous. The desire for continuous over- 
time usually means that the workers are underpaid. It 
does not mean that the interference with social life and 
leisure and the fatigue caused by the overtime are not felt 
and disliked by the workers but simply that financial pres- 
sure is * sufficient to overcome these objections. In highly 
seasonal industries, where between the busy seasons of in- 
tense activity there are long slack periods, the workers are 
likely to welcome the overtime as a means of tiding them 
over the long periods when work is scarce. 

The principal methods of reducing overtime are : 

1. Planning and scheduling of work so as to avoid con- 
gestion in any department by work coming through irregu- 
larly. 

2. Keeping in close touch with the progress of work by 
a control system in order to be warned of all failures of 
departments to maintain the schedule, and the despatch of 
immediate aid to departments falling behind. For this 
purpose an emergency squadron is provided, each member 
of which is trained to do a number of operations so that the 
squadron is able to help out any department. An eastern 
laundry visited by the writer has such a squadron. When 

of i head fireman, 2 second firemen, 2 coal passers ; the night 
shift of 1 head fireman, 1 second fireman and 1 coal passer — 8 
men working 12 hours each or 96 man-hours per day. Under the 
8 hour plan the 7 a.m. to 3 p.m. shift consisted of 1 head fireman, 
1 second fireman, 2 coal passers; the other two shifts of 1 head 
fireman, 1 second fireman and 1 coal passer, 10 men working 8 
hours or 80 man-hours per day. 



PREREQUISITES FOR THE REDUCTION 265 

not needed for emergency work the members are employed 
in marking and mending articles, sewing on buttons, etc. 
They also fill the places of absentees. The members of 
the squadron wear insignia to distinguish them from other 
workers, which fosters an esprit de corps. A western mail 
order house also has an emergency crew. The mainte- 
nance of schedules is especially important in the mail order 
business because the different items of an order come from 
different departments and a delay in one item's reaching the 
packing floor delays the entire order and tends to congest 
the packing department. This business is an exceptionally 
good example of intermittent fluctuations in the volume of 
work, for the total number of orders received and still 
more the number received by the individual departments 
vary greatly from day to day. The emergency crew in 
this house has no regular work, but is used entirely on spe- 
cial work. The Eastman Kodak Company also has an 
"emergency squad" specially trained to do numerous opera- 
tions, and reports the squad to be highly useful. 9 A large 
rubber manufacturing establishment has a "Production 
Squadron" which is available to strengthen any department 
needing assistance. The primary aim of the squadron, 
however, is to develop supervisors and skilled men. Fifty 
men are periodically picked from the best in the plant. 
They are guaranteed steady work and are trained to fit into 
any of the numerous departments. They are given courses 
in English, arithmetic, economics, mechanical drawing, or- 
ganization and management, rubber manufacturing prac- 
tice. On completing the course in three years they are 
given diplomas as Master Rubber Workers. Foremen and 
sub-foremen are selected from these men. 

Training workers to do several jobs introduces flexibility 

9 An excellent description of the emergency squad and its work 
in the Eastman Kodak Company is given by Mr. H. E. Akerly of 
the company in Factory, v. XX, p. 45. 



266 THE TURNOVER OF FACTORY LABOR 

which assists in meeting fluctuations in the volume of busi- 
ness and in the size of the force caused by absentees and 
by hands' leaving. If a plan of training every worker to 
do a job ahead of him similar to the one advocated by Mr. 
Gilbreth 10 is used, resignations and absences should inter- 
fere little with the maintenance of production schedules. 

3. Obtaining notice from workers who intend to resign 
in order to prevent departments from being short-handed 
and compelled to work overtime to maintain schedules. 
The problem of obtaining notice is discussed in the next 
chapter. 

4. Reduction of absenteeism which is another cause of 
overtime. Employers will be surprised to learn how 
numerous absences are. In the Ford plant before the 
adoption of the profit-sharing plan the daily percentage of 
absence was 10.5. In 1914, the first year of the profit- 
sharing plant, it was O.4. 11 Following up all absentees by 

10 See "The Three Position Plan of Promotion," Annals of the 
American Academy of Political and Social Science, v. LXV, May, 

1916, on "Personnel and Employment Problems," p. 289. 

11 Emmet, "Profit Sharing in the United States," U. S. Bureau of 
Labor Statistics, Bulletin, No. 208, p. 117. 

In an interesting article in the Annals of the American Academy 
of Political and Social Science, v. LXXI, pp. 140-155, Mr. J. S. 
Keir gives the experience of several firms with absences. The 
Dennison Manufacturing Company is stated to have an absence 
rate of 5.2 percent among women, 3.5 among men. In January, 

191 7, the Curtis Publishing Company is reported to have had an 
average of 42 daily absences per 1000 employees. This would be 
a low rate in a factory for the winter, when of course absences 
are more numerous, and under the condition of the labor market 
then prevailing, for workers are more lax in attendance, as in 
everything else, when jobs are easy to procure. A considerable 
part of the force of this company is clerical, which would tend 
to reduce the rate, but it is not stated how important this factor 
is. The Crompton-Knowles Loom Works is said to have an 
absence rate of 8j4 percent. Mr. Keir's article contains a good 



PREREQUISITES FOR THE REDUCTION 267 

calling at the home of the worker is an aid in eliminating 
unnecessary absences. The Joseph and Feiss Company. by 
this practice and by educating workers to appreciate the 
necessity of avoiding useless absences reduced the per- 
centage of absences to 1.4 percent in 1915. 12 Some firms 
require all persons absent without notice to present a state- 
ment from a physician to the effect that they were ill or 
other satisfactory explanation before permitting them to 
return to work. 

A common method of promoting regularity in attendance 
is the payment of bonuses, awarding of prizes, or granting 
vacations with pay to employees neither tardy nor inexcus- 
ably absent during a stipulated period. One of the greatest 
benefits of a medical department is the reduction in the 
time lost on account of illness. By nipping cases of indis- 
position in the bud, sending the worker home for the rest 
of the day, the medical department prevents the develop- 
ment of sickness which might cause several weeks of 
absence. The prompt and proper treatment of injuries 
prevents the development of infection which might cause 
absence. 

An efficient employment department aids in reducing 
absences. The numerous low grade men engaged when 
hiring is done by foremen are lax in attendance especially on 
Monday morning. Foremen also fail to take into account 
the accessibility of the plant to the applicant's home. In 
inclement weather the worker who has a long distance to 
travel with possibly poor transportation facilities is much 

discussion of the factors influencing the absence rate and methods 
which have been used to reduce it. 

"Richard A. Feiss, "Personal Relationship as a Basis for Scien- 
tific Management," Bulletin of the Society to Promote the Science 
of Management, v. 1, No. 6, pp. 12, 13 ; Annals of American Acad- 
emy of Political and Social Science, v. LXV, May 1916, on "Per- 
sonnel and Employment Problems," pp. 47 and 51. 



268 THE TURNOVER OF FACTORY LABOR 

more likely to remain at home than the worker whose home 
is near by. 

Reduction of alcoholism is an aid in reducing ab- 
senteeism. In some plants campaigns have been conducted 
on the order of the ''Safety First" campaign to reduce ex- 
cessive drinking. The men have been appealed to with sub- 
stantial success on the basis of self-interest, that is, the in- 
jury to health caused by excessive use of intoxicants. 13 
The maintenance of individual efficiency records, which, 
among other items include regularity of attendance and sys- 
tematic promotion upon the basis of these records, encour- 
ages regularity. 

Reports of absences to those in authority also encourage 
regularity, for workers are hesitant about remaining away 
when they know that every absence is brought to the notice 
of the foreman or division superintendent so that there 
is no chance that he will fail to learn of it and less chance 
that he will forget it. 

5. For diminishing overtime work in the rush season in 
seasonal industries the three principal methods are develop- 
ing staple lines which can be worked to stock instead of 
to special orders, inducing customers to place orders far- 
ther in advance of the season, and restricting the minimum 
time within which orders will be filled. These methods are 
discussed in the following section. 

"Concerning the effect of alcoholism upon absences, interesting 
data collected by the Northern Iron Company of Plattsburg, New 
York, are reported in the Iron Age, April 18, 1918, p. 1000. The 
company selected 10 men who did not drink at all or who did not 
drink to excess, and 10 men who were known to drink to excess. 
The men were of like nationalities, of equal physical fitness, and 
engaged in the same or similar work. In June and July, 191 7, the 
months selected for the experiment, there were 530 working days 
for each group. The moderate drinkers and abstainers, including 
overtime, worked 534 days ; the excessive drinkers worked 364 days, 
a loss of 166 days, or 31.3 percent. 



PREREQUISITES FOR THE REDUCTION 269 

3. Regularizing employment. 

Regularizing employment is important as an aid to reduc- 
ing the turnover not merely because of the direct effect 
upon the turnover of the reduction in the number of lay-offs 
and in the resignations of piece workers who leave because 
of failure to obtain sufficient work, but also because a shop 
with the reputation of providing steady work attracts a 
superior class of workmen who desire steady work and who 
are willing to stay where they can obtain it. The fear of 
unemployment is one of the greatest fears the average 
workman has and he is slow to leave a shop in which he 
feels assured of steady work. 

The problem of regularizing employment falls into three 
parts : 

1. Holding the force during industrial depressions. 

2. Reducing the irregularity caused by seasonal fluctua- 
tions in business. • 

3. Reducing the number of short time jobs. 
1. Tiding over industrial depressions. 

Industrial depressions more than anything else test the 
mettle of the selling organization for at precisely these 
times sales are most needed and customers are most re- 
luctant to purchase. Establishments selling identified 
products sometimes make special advertising ''drives" 
during these periods to induce reluctant consumers to pur- 
chase. Such a "drive" was made by Crofut and Knapp, 
distributors of Dunlap Hats during the depression of 1914. 
By a special advertising and selling effort sales were in- 
creased 25 percent over the previous year in spite of the 
depression prevailing. 14 

Working part time instead of laying men off in order to 
hold the force is a common practice in years of depression. 
During the depressed year of 1914 a Chicago metal manu- 
facturer employing nearly 5,000 men laid off only 27 men, 

14 Robert A. Holmes, Printers' Ink, v. LXXXIX, No. 12, pp. 27-32. 



270 THE TURNOVER OF FACTORY LABOR 

although in order to give work to the remainder it was 
necessary to reduce hours from 54 per week to as low as 
32. A number resigned and a number were discharged 
who were not replaced. The force decreased from 5,058 
at the end of 1913 to 4,631 in August, 1914. During the 
depression of 1914 the Illinois Steel Company retained all 
married men and those having dependents and divided 
work among them, although the men did not work full 
time. 15 Mr. Richard A. Feiss states that the Clothcraft 
Shops avoided lay-offs during the 1914 depression by cur- 
tailing working hours. For six months working hours 
were 15 percent less than standard. 16 Mr. John B. 
Andrews reports a New Hampshire shoe factory which 
employed half its force each alternate week during the de- 
pression. 17 The practice of reducing hours rather than 
reducing the force was extensively practised during the 
1914 depression. 

2. Reducing the irregularity caused by seasonal fluctua- 
tions in business. 

The principal methods of reducing the irregularity caused 
by seasonal fluctuations in the business are : 

(a) Stimulating sales in off season. An automobile man- 
ufacturer, who increased the average number of weeks 
worked by the force from 46.8 in 191 1 to 50.4 in 191 5, pays 
a bonus to salesmen to stimulate sales in winter months. 
New markets for the product may be discovered. A case 
is cited by the Iron Age 18 of a manufacturer of equipment 
used in stone quarries who found the all steel derrick he 

15 Henderson, Citizens in Industry, pp. 41-42. 

16 Feiss, "Personal Relationship as a Basis for Scientific Manage- 
ment," Bulletin of Society to Promote the Science of Management, 
v. I, No. 6, p. 135; Annals of the American Academy of Political 
and Social Science, v. LXV, May 1916, on "Personnel and Employ- 
ment Problems," p. 48. 

" American Labor Legislation Review, v. V, p. 185. 
"V. XCII, p. 131. 



PREREQUISITES FOR THE REDUCTION 271 

made for quarries could be used in sawmill yards. In 
this manner he secured a source of demand during his dull 
season. Paint manufacturers have regularized production 
by inducing people to paint in the fall instead of in the 
spring, the customary time, by "paint in the fall" adver- 
tising campaigns. Giving special discounts during the dull 
season is another plan. The anthracite coal mine owners 
have stimulated off-season purchases by selling at 50 cents 
a ton less in April than in November. 19 The summer 
prices of coal in general are less than the fall and winter 
prices. Special advertising campaigns to induce purchase 
of coal during the late summer months are very common 
in the coal trade. 

(b) Inducing customers to place orders in advance of the 
rush season. The Dennison Manufacturing Company has 
used this policy with success, inducing jewelers to order 
boxes for Christmas use, for example, in the spring and 
avoiding great concentration of the work within a few 
months. Mr. J. H. Willits has described the plan of a 
shoe company which has induced customers to put in ad- 
vanced estimates of their monthly requirements. 20 An im- 
portant factor in inducing customers to give the estimates 
is that although the estimates do not limit the customer, 
customers who do not exceed their estimates are preferred 
in busy times to those who order in excess of them. 

(c) Development of extra lines to fill in slack sea- 
son — "dovetailing." A large machinery concern, accord- 
ing to the Iron Age, solicited orders for drop forg- 
ings during its dull season which it was able to 
turn out in its well equipped drop forging depart- 
ment. Enough trade was secured to keep the depart- 

19 John B. Andrews, American Labor Legislation Review, v. V, 
p. 185. 

20 "The Unemployed in Philadelphia." Published by the Depart- 
ment of Public Works, p. 99. 



2J2 THE TURNOVER OF FACTORY LABOR 

ments busy steadily. 21 A manufacturer of machinery 
used in plants busy in summer had a slack season in 
the summer since his equipment had to be installed dur- 
ing his customers' off season. He added a line of driers 
and pressers used chiefly by distillers, grain handlers and 
clay workers. The distilleries are busy primarily in winter, 
from November to May. The plan of "dovetailing" is said 
to have worked well. 22 The Dennison Manufacturing 
Company has added articles to its line to fill in gaps left by 
dull seasons. 23 A rubber shoe manufacturer, according to 
Mr. John B. Andrews, adds rubber sheeting, rubber heels, 
tennis shoes, rubber cloth, and rubber tires. 24 Automobile 
manufacturers push closed models in the dull winter sea- 
son. Knote Brothers, New York, produce men's leather 
goods in the late autumn, belts in the early spring, sus- 
penders in the late spring, other stock specialties during 
the year. 24 James Keiser, Inc., produce heavy neckwear 
and knit goods in the autumn, light cloths and knit goods 
in the spring. 25 Canning factories in cities add such lines 
as pickles, jams, baked beans, plum puddings. The United 
States Bureau of Labor Statistics cites a case of "dove- 
tailing" in a Chicago factory in the women's ready-to-wear 
garment industry. 26 The factory makes dresses and waists 
and also petticoats, the seasons of which partially dovetail. 
Workers are transferred from one department to the other. 
Some indication of the possibility of regularizing employ- 

31 Iron Age, v. XCII, p. 131. 

"Iron Age, v. XCII, p. 130. 

28 Proceedings of the National Association of Corporation 
Schools, 1916, p. 681. 

24 American Labor Legislation Review, v. V, p. 186. 

28 Exhibit at Industrial Betterment Exhibit, Ethical Culture So- 
ciety, New York. 

26 "Regularity of Employment in the Women's Ready-to-Wear 
Garment Industries," U. S. Bureau of Labor Statistics, Bulletin, 
No. 183, p. 98. 



PREREQUISITES FOR THE REDUCTION 273 

ment by dovetailing is shown by the fact that in 31 weeks 
when the weekly payroll in one department was below the 
average weekly payroll of the department, it was above the 
average in the other department. The average variation of 
the weekly payroll from the average in the dress and waist 
department was 18.4 percent and in the petticoat depart- 
ment 28.9 percent, but the average variation of the com- 
bined weekly payrolls from the combined average was 
only 14.2 percent. 27 The Bureau does not indicate the 
effect upon stability of the dovetailing by stating the num- 
ber of employees transferred and the number laid off. 

(d) Working to stock in dull season. This requires the 
development of staple lines, the standardization of product 
which is so characteristic of American industry. The 
United States Bureau of Labor. Statistics cites a Cleveland 
factory which before the arrival of the dull seasons con- 
ducts an advertising campaign for blue serge suits, a light 
weight for summer wear, heavy for winter. As soon as 
the busy season is over the force works on blue serge. The 
Bureau states that for 6 weeks in the fall and about 8 
weeks in the summer the entire force is engaged in working 
on these special numbers. 28 The Dennison Manufacturing 
Company has standardized and now works to stock on some 
articles formerly made up on special order. 

(e) Transfer of help from slack to busy departments. 
Some establishments train employees in several jobs 
in order that they may be available for transfer in case 
of necessity. A list is kept of the employees available for 
different operations. Inducing employees to learn another 
operation is often difficult for they are loath to be trans- 
ferred, especially when they cannot earn as much in the 
new job as they have made at their regular one. The 
workers also feel that the acceptance of lower paying work 

21 Calculated from data given in Tables 48 to 99, Bulletin, No. 183. 
28 Bulletin, No. 183, p. 105. 



274 THE TURNOVER OF FACTORY LABOR 

may prejudice the management's willingness to pay them 
the higher rate of wages when they are engaged at their 
regular work. Also the workers do not have before them 
a definite prospect of regaining their original work at any 
specific time. They fear that they may be continued at the 
lower paying work indefinitely. They regard the transfer 
as a demotion instead of as a relief measure to save them 
from unemployment. 

The Bureau of Labor Statistics reports that difficulty 
was experienced by the Chicago garment manufacturer re- 
ferred to above, in inducing employees to leave the dress 
and waist departments for the petticoat department since 
rates in the latter necessarily were less than in the former. 29 
The Clothcraft Shops pay a retainer to workers while 
learning and when working on operations at which they 
fail to earn as much as on their regular operations. 30 The 
H. H. Franklin Manufacturing Company, which aims to 
set individual wages in accordance with the value of indi- 
vidual workmen, pays a higher rate to men who can do 
two or more major operations. 31 Although considerable 
education may be necessary to convince workers of the 
desirability of the transfer system, the plan is used suc- 
cessfully by numerous plants. The Dennison Manufactur- 
ing Company, employing about 2,200 workers, made 64 
transfers in 191 5 because of no work in the original de- 
partment. 

(f) Limiting the time within which orders will be filled 
during rush season. The Bureau of Labor Statistics cites 

28 Bulletin No. 208, p. 98. 

^Feiss: Bulletin of Society to Promote the Science of Manage- 
ment, v. I, No. 6, p. 12; Annals of the American Academy of Politi- 
cal and Social Science, v. LXV, May 1916, on "Personnel and 
Employment Problems," p. 48. 

81 George D. Babcock : "Fixing Individual Wage Rates on Facts," 
Iron Age, v. XCVII, pp. 1375-1379- 



PREREQUISITES FOR THE REDUCTION 275 

a Geveland clothing factory which requires that delivery 
dates shall not be fixed without the consent of the superin- 
tendent in charge of manufacturing. 32 By this means prom- 
ises of too quick delivery which would compel the taking on 
of temporary help for rush jobs are prevented and deliveries 
are so arranged as to provide for a steadier flow of work 
through the shops. A number of customers were lost but 
the Bureau reports that the firm apparently considered that 
the superior manufacturing efficiency which steadier work 
made possible more than compensated them for the lost 
orders. 

(g) Making repairs, alterations and doing special work in 
slack season. Many special jobs cannot wait until the slack 
season to be done. A docket should be kept of all work 
which can be deferred until that time and arrangements 
made to have it done by regular employees in so far as they 
are competent to do it. 

(h) Cooperation in the exchange of employees of several 
enterprises whose slack and busy seasons dovetail. This 
plan presents many ^problems. The rates of wages in the 
two establishments may be different and cause unwilling- 
ness to undergo transfer. The extra workers are often, 
though not always, wanted for the least skilled and 
poorest paying positions which pay less than the workers 
who are available for transfer regularly make. On the 
other hand extra work usually pays more than regular 
work of the same grade. As the workers who would be 
transferred are usually the least skilled and lowest paid, 
the wages which they receive as extra workers often ex- 
ceed the wages which they regularly earn. Their higher 
earnings as extra workers are likely to make them dissatis- 
fied with their regular wages. The type and grade of em- 
ployee desired by one establishment may be different from 

""Regularity of Employment in the Women's Ready-to-Wear 
Garment Industries," Bulletin No. 208, p. 105. 



276 THE TURNOVER OF FACTORY LABOR 

the type employed by the other. The only instance of the 
transfer method coming to the writer's attention, between a 
store and a printing and book binding plant, was not par- 
ticularly successful for the factory workers did not make 
good clerks. The plan, however, undoubtedly has possi- 
bilities. 

An eastern street railway, in order to hold employees 
whom it is unable to employ during the summer months, 
grants them three months' leave of absence on their re- 
quest. The worker then knows that he still has his job, 
and that when his three months' leave of absence is over he 
will not have to take his chance on being reemployed but 
he will find his old position waiting for him. 

3. Reducing the number of temporary jobs. 

The principal means of eliminating temporary jobs are: 
(1) the planning and scheduling of work in order to send 
it through the plant in so far as possible in an even flow 
instead of in bunches; (2) an emergency squadron as de- 
scribed above, trained to do all jobs in the plant and able 
to fill temporary needs; (3) working overtime instead of 
hiring extra hands. 

4. The adjustment of wages. 

After each operation has been simplified as much a$ 
possible and after the severe and disagreeable conditions 
have been removed from it or mitigated as much as possi- 
ble, the management is in a position to set a rate upon 
the job. 

The rate set must take into account : 

1. The skill required to do the work. 

2. The responsibility involved. 

3. The physical and nervous strain upon the worker and 
all disagreeable features of the job such as heat, dust, 
fumes, odors, monotony, etc. 

4. The amount which must be paid not simply to obtain 
workers of the grade desired who are milling to do the 



PREREQUISITES FOR THE REDUCTION 277 

work but the amount which must be paid to arouse the 
worker's loyalty to the management and his genuine inter- 
est in his work. 

The importance of this last point has been overlooked. 
Mr. R. H. Tawney has well said : 33 "Much is often said of 
the danger of 'discouraging enterprise' on the part of 
those directing industry. But it is not always sufficiently 
' realized that the enterprise of the worker is equally essen- 
tial." 

The employer does not wish a workman who is simply 
willing to work at the wages he receives. He wishes a 
workman who enters into his work with some degree of 
pleasure and enthusiasm, who is pleased with his job and 
his employer, who takes a genuine interest in his work and 
has a feeling of real good will toward his employer. Such 
a workman is infinitely more valuable than a man who is 
barely satisfied with his job and pay, but who is willing 
to remain at it because he can do no better elsewhere. 
Men as a rule exert themselves no more than is necessary 
for an employer to whom they are indifferent and at a job 
for which they do not care. They take pleasure, however, 
in doing their best for an employer who has their good will. 

The good will and loyalty of workmen cannot be ob- 
tained by paying them simply the bare amount they are 
willing to work for, the minimum which the market com- 
pels the employer to pay. The workers' good will is won 
only by giving something over and above the market rate. 
In setting wage rates, therefore, employers face the ques- 
tion, "How much is the good will of the workman worth, 
how much can I afford to pay in order to obtain a man 
who takes more than a perfunctory interest in his work, 
who takes pleasure in giving me the best that is in him?" 
Definite data on this point do not exist. There is evidence, 
however, in the increase in efficiency among the workers in 
88 Minimum Rates in the Tailoring Industry, p. 127. 



278 THE TURNOVER OF FACTORY LABOR 

the Ford plant following the Ford profit-sharing plan, and 
from the prosperity of many other firms which pursue 
a high wage policy that the amount which can profitably be 
paid to secure the loyalty and cooperation of workmen is 
great. Employers indicate that they set a high value upon 
loyalty by the liberality with which they treat those holding 
more responsible positions. Generous reward of execu- 
tives is recognized as only good business. The ordinary 
workman, however, is as capable of loyalty and gratitude 
as the ordinary manager and there is no question that even 
relatively unskilled men possess important opportunities for 
making themselves more valuable and for saving money to 
the employer, if they are only interested in so doing. 34 

The value of a business is its value as a going concern. 
Among the components of this value are the good will of 
the customers and the good will of the employees. Every 
employee who gives the business his loyalty and good will 
is in a real sense an investor in the business for he makes 
a contribution to the assets of the enterprise. But he will 
not make this investment for nothing. Like the capitalist, 
he must have a reward. Liberal wages in essence are a 
payment to induce the employee to become an investor in 
the business. 35 

84 A detailed investigation of just how much benefit would be 
derived from increasing the efficiency of "unskilled" and slightly- 
skilled labor would be a revelation to employers and undoubtedly 
would radically change their attitude toward "unskilled" and slightly 
skilled labor. Such an investigation of the "leaks" due to the 
inefficiency of so-called "common" labor and slightly skilled labor 
is urgently needed. 

35 An interesting example of the discouraging effect of low wages 
upon workers and the effect of an increase in arousing them to 
better efforts is furnished by the application of the minimum wage 
rates in the English tailoring industry. The following description 
is taken from the excellent study of Mr. R. H. Tawney, Minimum 
Rates in the Tailoring Industry. To be noted especially is his 



PREREQUISITES FOR THE REDUCTION 279 

quotation of a girl who said : "When on bad work we go easy, for 
one can't make any money worth having, anyway. It's when we 
get good work at a fair price that we wire in." This is the most 
typical of the ordinary man's reaction to excessive difficulties and 
inadequate reward. Instead of trying harder when difficulties are 
great he slows down. Mr. Tawney writes: 

"The suggestion that an advance in piece-rates would react 
favorably upon the efficiency of the workers was one which a 
considerable number of employers were disposed at first to dis- 
miss. A view which frequently occurs in the 'objections' submitted 
by them was that the workers did not want to earn more than a 
low weekly wage, and that the effect of raising the piece-rates 
would merely be that they would produce less work. The argu- 
ments used in support of this opinion were various — that the 
workers were girls living at home, that they were married women 
and widows, that they were supported from other sources, and 
that for these reasons they did not need more than a compara- 
tively low weekly wage. They are content,' stated one firm in its 
'objection,' 'to go easy and earn from 10s. to 12s. per week.' 'Our 
girls are quite content,' said another, 'to earn 8s. to 10s. a week/ 
'We have found,' said a third, 'that a very large percentage (at least 
50 percent) of our female labor has not the slightest desire to earn 
more than 12s. a week'" (pp. 124, 125). 

In contrast to these statements note the comments of manufac- 
turers after the legal minimum wage had been put into effect: 

" 'There was a rise of about 25 percent in the finishers' piece- 
rates,' stated a large manufacturer, 'in order to bring them up to 
the minimum. But when the new rates were introduced the girls 
earned easily considerably more than the minimum.' 'Piece-rates 
have been raised,' said another, 'on every class of work, and the 
result of raising them has been to encourage the girls to do more 
work. Naturally so, for they work more cheerfully. They come 
to be paid with very different countenances from what they used 
to have.' 'The Trade Board,' said the manager of a large firm, 
'has made 80 to 90 percent of the girls more thrifty. You cannot 
expect a girl who is paid 8s. to 10s. a week to do much work. 
Since the rates came into force the general thing is for the girls 
to do more work in the same time. Once they have earned the 
minimum, and felt what it is like to have more money to spend, 
they go ahead and don't fall back.' 'Output per head has in- 
creased,' said another. 'As a general rule the girls work better 



280 THE TURNOVER OF FACTORY LABOR 

if they are paid more/ Indeed, the psychological effect of relatively 
high and low wages on the workers would appear to be exactly 
the reverse of that often ascribed to them. So far from low rates 
'making them work/ they often produce listlessness and despair. 
So far from high rates encouraging slackness, they stimulate the 
workers to earn as much as possible while at work upon them. If 
one can earn 13s. 6y 2 d. fairly comfortably, one naturally tries to 
earn more, for then one can keep something worth having to 
spend on oneself. If one can only earn 10s. a week by working 
one's hardest, it is only natural to drop to 8s., for neither 8s. nor 
10s. are worth working hard for. Though this elementary fact in 
the psychology of labor is constantly overlooked, the workers are 
perfectly conscious of it. 'When we're on bad work,' said one, 
'we go easy, for one can't make any money worth having, anyway. 
It's when we get good work at a fair price that we wire in/ 
'Before the Act came into force/ said another, 'we did not earn 
as we might have done. It was so little that we had to give up 
all of it at home, anyhow/ A girl who before the Act averaged 
about 8s. 5d. and after 15s. 5d., was asked how it was she made 
so much more. She explained that, since the Board's determina- 
tion became operative, she was expected to earn not less than 
13s. 6y 2 d., and that, now her earnings were missed to that amount, 
she worked with a better heart, 'because it is so much more inter- 
esting to take home 16s. than only the minimum'" (pp. 132-134). 

The benefit of a liberal wage policy is illustrated by the experi- 
ence of firms with factories in both northern and southern England, 
the former a high wage, the latter a low wage territory. Mr. 
Tawney quotes as follows : " T established a factory in the south 
of England/ stated a Yorkshire manufacturer to us, 'and there- 
fore had an opportunity of discovering whether it was true that 
the industry was handicapped in the south by inefficient laborers. 
I found that the girls there were just as good workers as in the 
north, provided they were properly paid. . . . The manufacturers 
in the south are beaten because they pay low wages/ 'Higher 
wages/ stated another manufacturer in a similar position, 'cer- 
tainly pay us. We let the girls fix the piece-prices for different 
kinds of work for themselves and hardly ever pay less than they 
ask. To be well paid gives the workers dignity and self-respect. 
They take more pride in and care of themselves. They think 
they are worth more, and therefore they are worth more'" (p. 132). 



CHAPTER XIV 

, HIRING 

The following discussion of employment practice refers 
only to the hiring of wage earners. Hiring for more re- 
sponsible positions such as executives, salesmen, and tech- 
nical experts such as accountants, engineers, etc., presents 
radically different problems. 

Careful hiring is necessary in order to realize the full 
benefits of liberal wages, steady work, good working condi- 
tions and short hours. These conditions attract a superior, 
more ambitious type of workman. An efficient hiring sys- 
tem is necessary in order that the high grade men attracted 
by the desirable conditions may be selected from the others. 
Efficient emplo3^ment work is, therefore, the first step in 
following up the advantages gained by making jobs attrac- 
tive. 

i. The work of the employment department. 

The work of the employment department consists in: 

i. The study of the labor requirements of the plant. 

2. Getting in touch with desirable sources of labor 
supply. 

3. Sizing up and selecting men. 

4. Ascertaining the reasons why men leave and studying 
the causes of the turnover. 

It is not unusual to give the employment manager other 
duties such as handling grievances, supervising welfare 
work, supervising the progress of new employees. All of 
these things the employment manager should be particularly 
fitted to do because they require keen insight into human 

281 



282 THE TURNOVER OF FACTORY LABOR 

nature and exceptional ability to handle men. The em- 
ployment man is supposed to be an expert in these matters. 
In handling grievances, he possesses the advantage that he 
is a neutral party, which often is not true of the foreman. 
The employment man also often commands the worker's 
confidence to a greater degree than the foreman, as the fore- 
man has often lost the worker's confidence by tactless hand- 
ling. These latter duties, however, do not belong to the em- 
ployment man in his capacity as such and will not be dis- 
cussed under the work of the employment department. It 
will also be pointed out below that it is desirable to concen- 
trate the handling of the broader aspects of labor relations 
in an official of greater prestige, authority, and ability than 
even highly competent employment managers possess. 

2. Why a central employment department is desirable. 

Hiring by a central employment department is preferable 
to hiring by foremen because: 

i. Hiring is a specialized subject requiring special study. 
It is necessary to study the characteristics of each job in 
the plant, from this information to determine what qualifi- 
cations a satisfactory workman for each job should have, 
to work out methods of getting in touch with desirable 
men, and finally to devise methods of sizing up applicants. 
Foremen lack the time necessary to make these studies, 
they are often insufficiently interested in the subject of 
hiring to undertake to make them, and often they are in- 
competent to make them. 

2. Interviewing applicants requires more time than the 
foremen are able or willing to give. All promising appli- 
cants should be carefully interviewed whether a vacancy 
exists or not, in order to build up a waiting list of desirable 
applicants. An interview with a promising applicant takes 
from 5 to 20 minutes. The amount of interviewing which 
is necessary in order to build up a good file of desirable 
applicants is indicated by the experience of a western pub- 



HIRING 283 

lie utility which in 1913 interviewed 20,339 applicants to fill 
2,811 positions. The Brooklyn Rapid Transit Company in 

1915 interviewed 14,993 applicants to fill 4,218 positions, in 

1916 interviewed 17,263 to fill 5,775 positions, and in 1917 
interviewed 34,169 applicants to fill 8,292 positions. 1 When 
a vacancy occurs five or six of the most promising appli- 
cants should be summoned for a second and final interview. 

Foremen are usually willing to interview applicants only 
when a vacancy actually exists. They do not interview all 
who apply in order to build up files of desirable prospects. 
When a vacancy occurs foremen do not usually recall a 
number of applicants and select from them, but are inclined 
to take the first man whom a hasty interview indicates to 
be at all suitable. 

3. Sizing up men is to a great degree a matter of intui- 
tion, of subconscious impression. Some men are good 
judges of character, others are not. There is no assurance 
that the foreman is a good judge of men. Selection should 
be left to a specialist known to be a good judge of men. 

4. Interviewing just as salesmanship is an art requiring 
both natural ability and careful cultivation. The foreman 
may not naturally be a good interviewer and he has neither 
time nor often willingness to cultivate skill at interviewing. 

5. Experience in sizing up men and interviewing is an 
important factor in securing good results. Foremen do not 
acquire the experience which a specialist does. 

6. Some vacancies can best be filled by men already em- 
ployed in other departments. The foremen do not know 
accurately who are the men in other departments specially 
qualified for positions in their own departments. More- 
over, if the foreman of the other department objects to 
giving up a good man who would be more valuable if 
transferred, in the absence of a central employment office 
authorized to make transfers, there is no means to procure 

1 Electric Railway Journal, v. LI, p. 424. 



284 THE TURNOVER OF FACTORY LABOR 

the transfer except by the clumsy method of one foreman's 
appealing to the manager, which no foreman is willing to 
use. 

7. Hiring by foremen results in lack of coordination. 
One department may be dropping help while another is 
hiring the same kind of help. 

8. Foremen are unable to perform satisfactorily some of 
the incidental duties of the employment department such 
as ascertaining the causes why men leave, studying the 
causes of the turnover, persuading men who are leaving 
to remain, and arranging for the transfer of misfits. 
They lack the time properly to interview men who are 
leaving and often the tact and natural ability as inter- 
viewers to ascertain the real reason why the men are leav- 
ing. Often the foreman cannot learn the reason because 
it reflects upon the foreman himself or grows out of his 
relations with the worker. Foremen also often lack the per- 
suasive ability to persuade men who are leaving for trivial 
reasons to reconsider their decisions. 

Studies of the causes of the turnover cannot be advan- 
tageously made by each foreman with data from his own 
department. Such studies should be made by some one 
who has data from the entire plant. 

9. Hiring by foremen in some cases builds up cliques 
based upon nationality, religion, fraternal organization, etc., 
within the department, either because the foreman gives 
preference to men of a certain nationality or religion or to 
members of a certain organization, or because he hires such 
men unintentionally by asking men already employed to 
bring in their friends. 

3. Ascertaining the labor requirements of the plant. 

Ascertaining the labor requirements of the plant consists 
in intensively studying each job in order to learn its char- 
acteristics, and, from the information thus obtained, working 
out conclusions concerning the qualifications required to 



HIRING 285 

fill it. This study is known as "job analysis." The in- 
formation obtained from the study of each job is entered 
on a card and the card is filed for reference. The employ- 
ment department thus has at its disposal a file of cards 
showing the nature of the operation and the type of man 
considered best fitted for every job in the plant. 

The information given by a complete job analysis covers 
the following points: 

1. Nature of the job. 

a. Precise nature of the operation. 

b. Pay for beginners. 

c. Period elapsing before advances are given and the 
amount of advances if a regular schedule for advances 
exists. 

d. The amount an average good man can earn at the 
job. 

e. Time required by an average good man to attain 
normal output. 

f . Opportunities for promotion ; names of the specific 
operations for which the operative is in line for promotion 
and their rates of pay. 

g. Any particularly unattractive features about the 
job, such as great physical or nervous strain, heat, dirt, dust, 
steam, wetness, nauseating odors, monotony, etc. 

2. Characteristics desired of the workman. 

a. Occupations within the plant from which workers 
are to be drawn in preference to hiring outsiders. 

b. Specific physical characteristics required of the 
worker such as great strength, good eye sight, dexterity, 
agility. 

c. In the case of some jobs physical defects which 
in general disqualify applicants will not be a bar. Also 
certain physical defects which ordinarily would be a bar 
may not be a bar. These exceptions to general rules con- 
cerning physical defects are specified. 



286 THE TURNOVER OF FACTORY LABOR 

d. Special knowledge, skill, experience, or training 
necessary or desirable. Names of occupations experience 
at which especially qualifies men for the job. 

e. Mental characteristics required of the worker, such 
as general degree of intelligence necessary, whether high, 
moderate or low, and special mental characteristics such 
as good memory, an eye for details, quick reaction, etc. 

f. Requirements relating to applicant's personality 
and character, such as ability to meet the public; in the 
case of workers who work with helpers, tact and ability to 
get on with others; in the case of positions involving con- 
siderable responsibility even though perhaps not great in- 
telligence or skill, a sense of responsibility. 

g. Age limits if any. 

An excellent description of the nature of job analysis was 
given by Mr. P. J. Reilly of the Dennison Manufacturing 
Company before the National Association of Corporation 
Schools in 191 5. I quote Mr. Reilly's description of the 
requirements of three jobs : 2 

Requirements for fine stock making : 

"For fine stock making we employ nearly 400 girls. We 
have found that a girl who would succeed quickly in this 
branch should have small, well-kept hands, not roughened 
by heavy house-work. She should be right-handed, since 
the left-handed girl increases unduly our training expenses. 
She should be from fifteen to twenty-five years of age, have 
good vision and she is preferred when she has had at 
least ninth grade schooling or better. We have a training 
school for the teaching of paper box making and find it 
costs us about $35 to put a girl through the course of in- 
struction occupying fourteen weeks. Whenever we select 
persons who deviate from the above set of requirements, our 
cost is considerably increased." 

2 Proceedings of the National Association of Corporation Schools, 
1915, PP- 757-763. 



HIRING 287 

Order fillers in the finished stock department : 

"This job requires a very active man. He must walk 
much and should be able to move about quickly. He must 
be free from foot troubles, rangy and active enough to get 
at stock quickly. He must be intelligent enough to read and 
understand orders quickly and accurately." 

Gummed Label Cutting: 

"The labels are printed on large sheets and put in a 
wooden box which is similar to a butcher's block. They 
are usually cut 25, 34 or 50 at a time, depending on the 
size and shape of the label. The job requires that a per- 
son stand all day. A girl to be contented at this job ought 
to be free from such defects as broken arches, rheumatism 
or a weak back. It was found on this job that a girl who 
was at least five feet, three inches in height worked with 
the least fatigue. If she was taller than that stooping over 
the block board would fatigue her. If she was much 
shorter she would have to hold her arms in an unnatural 
position. To do this work she requires a fair knowledge of 
arithmetic. She must know enough arithmetic to remember 
that when by cutting a thousand labels in 'lifts' of 34, she 
would get 102 labels every time three cuts were made, which 
would be the amount required to fill the box. Three lifts 
make a box of 100 labels. It seems incredible that any aver- 
age employee would not have sufficient arithmetic to do a 
problem of that sort, but in our community a fairly large 
proportion of our help have had only sixth, seventh or eighth 
grade schooling, and they are unable after working for sev- 
eral years in factory occupations to do problems like this." 

To simplify the making of job analyses, some firms use a 
standard form on which the possible requirements of the 
job are printed. The analysis is made by checking those 
qualities considered necessary, unnecessary, desirable or 
undesirable for the particular job. The following form is 
used by a middle western shoe manufacturer: 



288 THE TURNOVER OF FACTORY LABOR 



Requirements of position Symbol Position .... 

Department Date Brief description of duties 



Manual 
Clerical 
Executive 



Man 
Woman 
Boy 
Girl 



Tall 

Medium 

Short 



To what extent are the following qualifications 
necessary or desirable? (Check N, necessary, 
U, undesirable.) 



Education 

Experience 

Technical knowledge 

Strength 

Dexterity 

Judgment 

Imagination 

Fact 

Good eyesight 



Accuracy 

Orderliness 

Patience 

Memory 

Quick reaction 

Concentrated attention 

Diffused attention 

Reliability 

Forcefulness 



> Piece work earnings Hour work earnings 
Min 



Max 

Line of promotion . . . 

Analyzed by 

O.K. Superintendent, 



This outline is printed on a 4x6 card. The reverse of the 
card is used for special remarks. 

An eastern manufacturer uses a shorter and radically 
different form: 



Detail of Job. 
Duties 



Job No Grade Occupation . 



Time required to Previous training or 

learn job experience 

Starting wage Next advance Wage limit . . 

Age Height Weight Posture 

Motion Hands Eyesight . 

Schooling desired Overtime lay-offs 



HIRING 289 

The prevailing practice has been for foremen to requisi- 
tion help under the general name of the occupation without 
further description, asking, for example, for lathe hands 
or milling machine operators. This practice often results 
in confusion and unnecessary trouble because there fre- 
quently is great difference in the various operations per- 
formed upon the same machine and great difference, there- 
fore, in the character of the worker required. 3 When the 
job analysis is made, every operation is given a number. 
Requisitions are thereafter made by the operation number 
rather than by the name of the occupation. 

The employment man soon comes to know the type of 
man he desires for the jobs most frequently in need of fill- 
ing. For these jobs the recorded analysis becomes superflu- 
ous. Employment men who have made job analyses have 
told the writer they do not use them as much as they had 
expected. Nevertheless job analyses have three distinct ad- 
vantages: (1) they are needed for reference in hiring for 
jobs infrequently vacated; (2) in case of change of em- 
ployment men they are an invaluable aid to the new man in 
learning the ropes. In large employment offices where the 
employment manager is assisted by one or more inter- 
viewers one of the interviewers is usually promoted when 
the manager leaves. In such cases a new interviewer is 
necessary and the file of job analyses is an aid to breaking 
him in; (3) in working up the analyses much new infor- 
mation concerning the characteristics of jobs is brought to 
light and the employment man obtains many new ideas con- 
cerning the qualifications which operatives should have. 
Job analysis is well worth while alone for the new informa- 
tion which it unearths. 

"From his knowledge of the work done in the department, from 
the foreman's statement of what the job pays, from his knowl- 
edge of the worker whose leaving caused the vacancy, and from 
conversation with the foreman, the employment man learns or 
guesses at the grade of workman desired. 



290 THE TURNOVER OF FACTORY LABOR 

4. Getting in touch with good men. 

The first source of help to be considered is the working 
force itself. Suitable men already employed are prefer- 
able to outsiders because: 

1. More accurate information is available concerning 
their qualifications. How much would the employment man 
not give to know as much concerning the skill, willing- 
ness to work, reliability, and loyalty of applicants for work 
as he already knows of the men on the force from his own 
acquaintance with them and with their work or as he can 
learn by reference to payroll records and from their fore- 
men ! By promoting men who have made good on simple 
operations to more difficult ones and by hiring outsiders for 
the simple jobs the risk of a misfit is largely eliminated in 
filling the difficult jobs, where misfits are costly, and 
transferred to the simple jobs where they are less costly. 

2. By arousing the worker's gratitude promotion causes 
him to make a greater effort, which means that he is less 
likely to fail at the new job, that he reaches the standard 
output sooner, and that he is permanently a more efficient 
and contented workman. 

3. An establishment promoting on the basis of merit at- 
tracts a superior grade of help because men seek work 
where they know there is an opportunity to advance. 

4. Promotion tends to hold men, so that in filling va- 
cancies by promotion the employment manager is prevent- 
ing other vacancies from occurring. 

It is the business of the employment department to know 
or learn the workers most deserving of promotion to each 
position in the plant. If individual efficiency records are 
kept, these furnish the main reliance of the employment 
department. 4 

4 Efficiency records are discussed in Chapter XVI. 
It is frequently possible to establish systematic lines of promo- 
tion so deserving workers are advanced through a definite sequence 



HIRING 291 

To assist in filling vacancies by the promotion of desir- 
able employees the help requisition blanks of some firms 
used by the foremen to inform the employment department 
of needed help contain the question: "Do you know of 
anyone especially suitable for the position ?" 

In every force there are certain men who have in mind 
definite jobs which they would like to obtain. Often the 
reason is that they have had previous experience at this 
work. It is desirable to grant these preferences in so far as 
possible without slighting more deserving men because men 
do better at jobs which they particularly desire and because 
if there is a job which a man desires especially but which 
he cannot obtain in the plant he is likely to seek it else- 
where. J 

To handle these cases of special fitness and special prefer- 
ence some employment men maintain a file of employees 
who have had previous experience at, or who have peculiar 
qualifications for, or have indicated special preference for 
other lines of work than those in which they are employed. 
The worker's previous experience and preferences are dis- 
covered in the original interview at the time of hiring, and 
his name filed under the names of alternative jobs for which 
he is considered desirable at once. The employment man- 
ager is thereby enabled simply by referring to the name of 
each operation in his file to learn the names of all men in 
the force who might be advantageously transferred to fill va- 
cancies in the given occupation. A Buffalo metal working 
plant using such a plan constantly maintained a file of about 

of positions. In many instances, however, definite lines of promo- 
tion are not practical because there are many operations which are 
substantially an equally good preparation for a large number of 
more exacting positions. In such cases the positions are divided 
into several grades and promotions made regardless of the specific 
operation from class to class. 



292 THE TURNOVER OF FACTORY LABOR 

50 men available for other jobs. The size of the force 
was about 700. 5 

In order to facilitate the filling of vacancies with men 
already employed, no foreman should be permitted to lay 
off a worker either temporarily or permanently without 
notifying the employment department. If the work of the 
factory is done under a schedule, the foreman will know 
precisely when each man will no longer be needed. It will, 
therefore, be possible for him to notify the employment de- 
partment of impending lay-offs in advance, and a notifica- 
tion of at least 48 to 72. hours should be required to enable 
the employment department to arrange transfers. 

Next to the men actually in the employ of the company 
the most desirable source of help is men previously in the 
employ of the company at the same or similar work. Com- 
paratively little is now done in a systematic way to keep 
in touch and assure the return of desirable men whom it is 
necessary to lay off. A street railway company was men- 
tioned in the preceding chapter which, finding it necessary 
to reduce its force during the summer months, grants men 
a leave of absence for three months. The fact that the 
men are sure that they can have their old jobs back at the 
end of a definite period is an inducement for them to return. 

6 The plan of allowing men to indicate preferences for promotion 
loses its usefulness when it is used by men who are simply seeking to 
be transferred to easy, well-paying jobs, instead of by men who are 
ambitious to advance and who are willing to go to some trouble 
and possibly some pecuniary sacrifice to do it. Its success pre- 
supposes that piece rates are fairly adjusted between jobs so that 
earnings are proportional to the difficulty, responsibility and attrac- 
tiveness of the work. When rates are fairly adjusted between jobs 
so that the "plums" are eliminated, the system of encouraging men 
to indicate their preferences tends to bring to the attention of the 
management the most ambitious members of the force, for it is 
these men who seek promotion and who have definite aims as to 
what they wish to do. 



HIRING 293 

Businesses with pronounced seasonal fluctuations usually 
endeavor to give the workers laid off to understand that 
they will be welcome when the busy season returns but 
usually no more definite arrangement exists concerning the 
taking back of the workers. 

A third source of help are men recommended by em- 
ployees. The advantages of this source of supply are : 

1. It is possible to obtain more accurate information 
concerning the character and ability of these men than 
of applicants in general. There is considerable truth 
in the old adage : "Birds of a feather flock together." The 
applicant can be judged to a great extent by the worker who 
recommends him. If a man is intelligent, ambitious, sober 
and steady, he is likely to have friends of that character. 
He does not as a rule have lazy, dissipated, good-for-noth- 
ing friends. The types are not congenial and as a rule do 
not mix. 

Employees are usually conservative in recommending 
their friends. They feel a responsibility in making recom- 
mendations. They know that their word has considerable 
weight in inducing the firm to hire men and with the natu- 
ral pride which men have in their judgment they do not 
wish some one to be hired on their recommendation who 
fails to make good. Few employment men with whom the 
writer has talked find that employees irresponsibly recom- 
mend out of friendship persons who are not qualified. 
By far the greater number of employment men mention 
the desire which the men feel that their opinion shall be 
found correct. 

In establishments where the men are well treated and 
where high standards of work exist, once a worker finds 
a place in the organization and feels himself a part of it, 
he takes a pride in it which prevents him from recommend- 
ing persons who he feels cannot or will not uphold the 
standards of the organization. 



294 THE TURNOVER OF FACTORY LABOR 

2. When an old employee recommends a friend for a 
job he usually tells his friend of conditions in the plant and 
thus causes him to begin work with a favorable impres- 
sion of the company. This is a substantial aid in breaking 
in the new man because one who starts in favorably dis- 
posed is more likely to see the good points of the place and 
to minimize its drawbacks than one who is indifferent. 

3. A new man feels less of a stranger in a place in 
which he knows some one. The old employee is an aid 
also in making the new man acquainted in the plant. As 
the sense of strangeness which a new man feels oftens tends 
to make him dislike the shop and work and see the dis- 
advantageous features of the job larger than they really 
are, a friend in the plant who assists in breaking down the 
new worker's feeling of strangeness aids in holding him. 

4. The new employee has the advice and encourage- 
ment of the man who recommended him. If the new 
man is having trouble learning the job, or if there are fea- 
tures about the work or his treatment by the foreman which 
he dislikes he will probably tell them to his friend. The 
old employee who naturally wishes to see the man he recom- 
mended make good, reassures and encourages him and pre- 
vents him from exaggerating such matters in his imagina- 
tion. Thus the old worker assists in tiding the new man 
over the breaking in period when men are most likely to 
quit. 

5. It is gratifying to the old employee to have a friend 
hired on his recommendation and fosters his good will. 

If the plant is a desirable one to work in and if it is 
understood that a good word from an employee is an aid 
in obtaining a job, recommendations from friends in the 
plant will be sought by applicants for work and it will be 
possible to supply a large part of the needs of the plant 
from applicants so recommended. The employment man- 
ager of an establishment making paper novelties where 



HIRING 295 

working conditions are excellent estimates that half 
of the applicants who come to them are referred to them 
by old employees. The labor supervisor of an adding ma- 
chine manufacturer mentions several departments in the 
organization where the custom of relying on recommenda- 
tions of employees has grown up and where practically all 
vacancies are filled in this manner. A middle western 
manufacturer of agricultural implements writes: "The 
larger percent of our skilled or semi-skilled men are hired 
on recommendations of our foremen or other employees 
and we obtain our best men in this way." The book of 
recommended help of a Chicago metal working establish- 
ment in which are entered the names of applicants recom- 
mended by employees shows that from February 5, 1914, 
to December 11, 1916, 576 applicants were recommended 
by employees. During this period the establishment hired 
7,617 workers. Of these, however, 4,837 were laborers, 
and as recommendations were almost entirely of men for 
skilled or semi-skilled positions or of boys, the number 
recommended should be compared with the number of 
skilled and semi-skilled men hired, which was 2,780. As 
nearly all the applicants recommended were hired, it is 
evident that recommendations were a substantial aid in 
obtaining help. These figures, however, far from indicate 
the total number of men hired upon the recommendation of 
old employees. They do not include men brought in by 
old employees and hired at once or men sent in by old em- 
ployees and hired at once. The names entered in the book 
include only those recommended applicants for whom no 
position was immediately open at the time of recommenda- 
tion, and whose names were, therefore, entered in the book 
for reference. 

A question on the blanks used by foremen in requisition- 
ing help asking them to name any especially desirable per- 



296 THE TURNOVER OF FACTORY LABOR 

son for the place will bring some recommendations of out- 
siders. 

In order that employees may clearly understand that 
recommendations of deserving applicants who really wish 
work in the shop are desired, some establishments mention 
the fact in their rules and regulations. Sometimes a spe- 
cial notice is used to call attention to the policy. The fol- 
lowing notice was used by a middle western shoe manu- 
facturer : 

To Our Employees: 

It is always our aim to secure the best help obtainable 
and, if possible, to secure men who are particularly fitted 
for the position for which they are employed. 

We realize that a great many of our present employees 
have acquaintances of good character who are skilled in 
our line of manufacture and we shall be pleased to receive 
your recommendation of such persons. 

Suitable forms may be secured from your foreman for 
this purpose and when properly filled out should be given 
back to him or to the employment department direct. 

The employment department will notify the person rec- 
ommended when an opportunity occurs in a department 
in which we can use him. 

We request your hearty cooperation in connection with 
the foregoing. 

A common practice of employment men when they must 
fill a position of particularly exacting requirements is to 
ask several high grade employees that they know inti- 
mately to suggest desirable men for the job. 

A possible danger of the recommendation system which 
is mentioned by almost every one is that it may lead to 
cliques. One firm states it found almost one entire depart- 
ment belonging to one patriotic order and as they began to 



HIRING 297 

show a clannish spirit, it was necessary to separate them. 
In order to prevent the development of cliques many firms 
avoid placing the new and the old employee side by side 
and prefer to put the new man in another department. 

Absolutely essential to the success of the recommendation 
system is it that the establishment have a reputation as 
a good place to work. High grade men will not seek recom- 
mendations to help them obtain work in establishments 
which are not regarded as desirable working places. 

The fourth source of help is the transient applicants 
who visit the employment office in search of work. The 
best and only way to secure numerous and desirable appli- 
cants for employment is to pay good wages and to maintain 
good working conditions. The rule that word of mouth 
advertising is the best advertising applies in obtaining help 
as elsewhere. A plant with the reputation of being a good 
place to work not only secures the most desirable appli- 
cants but has numerous applicants when others have few. 
It is able, if it desires, to build up a waiting list of appli- 
cants who are already employed. An eastern printing 
and bindery establishment which has greatly improved con- 
ditions by the introduction of the Taylor system estimates 
that fifty percent of their applicants are attracted by the 
good conditions. A button factory which has desirable con- 
ditions states that a large majority of their applicants have 
friends in the plant, from whom they have undoubtedly 
heard it is a good place to work. The employment man 
of an establishment making tags, labels, and paper novelties, 
which has done much to improve working conditions, says 
that the work has very noticeably strengthened their po- 
sition in the labor market, that applicants for work almost 
invariably come to them first, that many register their ap- 
plications while working elsewhere, and that the company 
generally has a waiting list. The employment manager of 
a Chicago metal working establishment with a high repu- 



298 THE TURNOVER OF FACTORY LABOR 

tation for model conditions, tells the writer that he has 
plenty of men waiting outside his office for jobs when other 
firms in the vicinity are telephoning him to send them any 
applicants for whom he has no need. 

Advertising is used by most firms only as a last resort. 
It is a sign of good working conditions not to be com- 
pelled to advertise for help. Firms with a reputation for 
good working conditions do not need to advertise except to 
fill particular positions peculiarly difficult to fill, to obtain 
large numbers of workers on short notice or in times of ex- 
traordinary labor scarcity such as have prevailed since early 
in 1916. 

Schools and vocational guidance bureaus are important 
means of obtaining desirable boys and girls. By becoming 
acquainted with the teachers in neighboring schools and by 
convincing them that -his establishment offers good oppor- 
tunities for children and that children are well treated, the 
employment manager can induce them to send him the most 
promising students who are entering industry. 

Vocational guidance bureaus, which are rapidly increas- 
ing in importance, are a great aid to employers who treat 
children with particular consideration because they^ know 
accurately how children are treated in various establish- 
ments and give preference in placing children to those es- 
tablishments offering them the best opportunities and ac- 
cording them the best treatment. By placing the most 
promising boys and girls in the establishments giving chil- 
dren the best treatment, vocational guidance bureaus can 
exercise a strong beneficial influence upon the condition 
of children in industry. 

5. Sizing up applicants — scientific tests. 

Fitness of the applicant may be considered from two 
points of view: fitness for the organization and fitness 
for the specific job. The first is a question of the appli- 
cant's attitude, of his character and personality. Is he in- 



HIRING , 299 

dustrious, reliable, careful, cheerful, honest, persistent in 
the face of difficulties, is he of a personality likely to get on 
well with those in authority and his fellow workers ? Fit- 
ness for the job, on the other hand, is a question of apti- 
tude, of his physical and mental ability to do the work. 6 

The means for determining the fitness of applicants 
fall into two classes which may be called scientific and 
empirical. By scientific tests are meant tests which directly 
demonstrate the existence or non-existence of specific char- 
acteristics. Empirical tests are those which give only 
indirect evidence of the applicant's fitness. 

Scientific tests of fitness fall into two classes: those 
relating to physical fitness and those relating to mental 
fitness. 

The physical fitness of the applicant is tested by the medi- 
cal examination which nearly all large establishments now 
require. The examination, as a rule, is somewhat less thor- 
ough than a life insurance examination and takes usually 
from ten to twenty minutes. The rejections, as pointed 
out in Chapter XI, usually run from one to ten percent 
of the number examined, depending upon the severity 
of the standards for acceptance. 

The Navy Department in hiring laborers and artisans 
for navy yards several years ago required not only that 
the applicant be free from certain specific organic and func- 
tional defects but that he attain a grade of 85 based on a 
standard system of rating. On the basis of height and 
weight a tentative maximum rating was given which never 
exceeded 98 and subtractions were made from this for 
various defects. In order to attain a tentative rating of 98 

8 See Richard H. Feiss : "Personal Relationship as a Basis for 
Scientific Management," Bulletin of Society to Promote the Science 
of Management, v. I, No. 6, p. 8, and Annals of the American 
Academy of Political and Social Science, v. LXV, May, 1916, on 
"Personnel and Employment Problems," p. 36. 



300 THE TURNOVER OF FACTORY LABOR 

the applicant must weigh over 160 pounds and be 5 feet 6 
inches in height. Giving applicants definite grades on their 
physical condition of course makes possible more accurate 
ascertainment of their relative fitness. 

Mental tests are still in the experimental stage, but con- 
siderable work is being done along this line. There is a 
great need for a general intelligence test and for tests of va- 
rious kinds of dexterity and of the qualities of attention. 
By far the most important tests which could possibly be 
developed from the standpoint of the employment man, not 
to mention society at large, are those relating to character. 
It would be invaluable to the employment man to be able 
to measure the applicant's industriousness, his carefulness, 
his sense of responsibility, his honesty, 7 but such tests 
seem beyond the range of possibility. 

The fact that the tendency is for factory work to be- 
come more and more simplified and to be reduced more and 
more to automatic routine by the subdivision of labor and 
by the development of semi-automatic machinery does not, 
as one might suspect, render psychological tests unimportant 
because the work is made so simple that any one can do it. 
The greater specialization of work narrows more and more 
the particular qualities on which success at the work de- 
depends. Deficiency in one or more of these qualities is 

T It is true, of course, that the traits of character which a person 
exhibits at a particular time are simply the result of the complex 
of reactions produced by the particular circumstances so that 
under some circumstances an industrious man may be lazy, a care- 
ful one careless, a courageous one cowardly, etc. Nevertheless, past 
experience apparently produces the habit of reacting in a certain 
way, builds up a predisposition to certain kinds of action. It 
would be invaluable to the employment man to be able to measure 
the relative strength of these predispositions in different indi- 
viduals, although it might turn out that under the particular cir- 
cumstances prevailing in the establishment the workman might act 
contrary to his well established habits. 



HIRING 301 

less likely to be compensated by exceptional ability in some 
other quality when the number of traits upon which suc- 
cess depends is few. Numerous apparently simple jobs will 
be found in every establishment which demand the posses- 
sion of rather specialized psychological qualities. 8 

8 A good example of the value of psychological tests in connec- 
tion with what appears on first sight to be an extremely simple 
operation is shown by the experience of Mr. S. E. Thompson with 
girls inspecting balls for ball bearings in a bicycle factory, described 
by Mr. Taylor (Principles of Scientific Management, pp. 87-97). 
One hundred and seventy girls were employed inspecting balls. 
They placed a row of balls on the back of the left hand and as 
the balls rolled down the crease between the fingers they examined 
them in a strong light and picked out the defective ones with a 
magnet. The work required quick power of perception and a quick 
reaction to the impression. Mr. Thompson had the reaction time 
of the girls tested and eliminated those with slow reaction. By 
this and other means, such as reducing the hours, thirty-five girls 
working eight hours a day did the work which 120 did in ten and 
one-half hours, with an increase in accuracy of two-thirds. 

The increase in output and accuracy probably cannot be entirely 
attributed to superior methods of management. A large part of 
the increase was undoubtedly due to the fact that the girls were 
making a greater effort. The dropping of such a large proportion 
of the force would in itself be a tremendous stimulus to produc- 
tion, for naturally the girls would exert themselves in order not to 
be among those dropped. 

Professor Miinsterberg (Psychology and Industrial Efficiency, 
pp. 1 19-120) cites several examples of apparently simple jobs at 
which particular psychological qualities determined the worker's 
efficiency. One was a job in a pencil factory where the worker 
was required in a single movement to pick up exactly a dozen 
pencils, no more, no less. Some learned this without difficulty, 
others never learned it despite repeated efforts. Another was a job 
in an accounting department where girls looked over slips from 
which the weekly pay-list was compiled. The girls looked through 
groups of twenty slips to see if the figures on each agreed. After 
the slips were sorted the totals on each order number were obtained 
on the adding machine. 

There was great variation in the proficiency of the workers at 



302 THE TURNOVER OF FACTORY LABOR 

6. Sizing up applicants — empirical tests. 

a. The interview. 

In the prevailing undeveloped state of scientific tests of 
fitness the main reliance of the employment man must be 
on empirical devices for sizing up men. The most impor- 
tant of these and by far the most important of all the means 
of sizing up men is the interview. 

Inadequate attention has been paid to the subject of inter- 
viewing, and yet prominent employment men who have 
made enviable records in reducing the turnover, tell me 
that thoroughness and care in interviewing is the main 
reason for their success. Carefulness and thoroughness 
in interviewing is the principal thing which distinguishes 
high grade employment practice from poor. 

The applicant should not be interviewed through a win- 
dow or across a railing or a counter while standing in line 
with other applicants, but should be seated beside the 
interviewer's desk, in a private room if possible. Inter- 
viewing the applicants in line gives the impression that 
the interviewer takes no particular individual interest in 
them, that they are not being given careful and serious 
individual consideration. The physical barrier between the 
interviewer and the applicant also tends to create a psycho- 
logical one. These facts hinder the interviewer from win- 
ning the man's confidence. The presence of others renders 
the applicant highly self-conscious and prevents him from 
talking freely and forgetting himself, which the interviewer 
wishes more than anything else for him to do. When the 
applicant is interviewed privately it is easier to cause him to 

these operations. Good workers could turn the slips so rapidly 
that a bystander could not read a single figure and would not 
make a mistake in thousands of slips. Others had great difficulty 
in attaining speed and made numerous mistakes. Frequently work- 
ers who were poor sorters made excellent adding machine operators, 
and poor operators made excellent sorters. 



HIRING 303 

forget himself. He feels that the interviewer is really 
interested in learning of his qualifications, that he has a 
sympathetic and interested listener, and that his case will 
be given careful individual attention. This aids in gaining 
his confidence and inducing him to speak freely and frank- 
ly. Interviewing men in line also results in the men's deriv- 
ing their answers to the interviewer's questions from what 
was said by those preceding them. 

The interview is based on the application blank which 
the applicant has already filled out. This gives the most 
essential facts concerning the applicant, his or her address, 
whether married or single, the number of dependents, in 
the case of unmarried applicants whether he or she 
is boarding or living at home, the amount of schooling, 
whether ever previously in the company's employ, the names 
of previous employers, work done, duration of service, 
wages received and reason for leaving, the kind of work 
desired and the wages expected. 

On the basis of the information contained in the appli- 
cation blank eliminations can be made at once. The appli- 
cant may lack the minimum amount of training or experi- 
ence considered essential for the position. If the applicant's 
address shows he does not live conveniently near the plant 
it is well nigh useless to hire him for he is almost sure to 
leave soon. If he has been doing higher grade work at 
higher wages than the work he is applying for pays, he will 
not make a permanent employee. It is a good rule that no 
man shall be hired for a job which represents a decrease 
in earnings to him and that in every possible case the job 
shall mean an increase in the earnings of the worker 
hired. 9 A workman who improves his condition by 
taking the new job is favorably disposed toward the job 

9 Note remarks below concerning the exceptional case of men 
who leave high paying seasonal industries in order to secure stead- 
ier, even though lower paying work. 



304 THE TURNOVER OF FACTORY LABOR 

and toward the employer who gives it to him. He is less 
critical and more ready to see good points in his sur- 
roundings. Moreover his self-confidence is strengthened 
and his ambition to advance still farther is quickened. 
Because he desires to continue to advance he is a more valu- 
able employee, he brings enthusiasm, "pep," initiative, com- 
petition into the organization. 

For low grade routine work requiring little or no ini- 
tiative or judgment and offering little chance for ad- 
vancement intelligence, ambition, and initiative may be a 
positive detriment. For these jobs the employment man 
may seek ignorant, unintelligent, stolid but industrious 
workers. A foreman in a middle western farm implement 
factory found that on a certain assembling operation of the 
simplest and most routine sort, which consisted simply in 
putting bolts in the bolt holes of certain parts of a machine 
which was shipped out knocked down and of screwing on 
nuts, that the only youths he could hold on the job for 
any length of time were young immigrants. To them the 
job was desirable because it paid seemingly good wages 
and the extreme monotony did not oppress them. The em- 
ployment manager of an eastern piano manufacturer told 
the writer that he solved the problem of instability among 
the helpers on certain varnishing operations where the work 
was dirty and disagreeable by hiring newly arrived Rus- 
sians. Many employment men attempt to get newly arrived 
immigrants of the unintelligent but hard working type for 
foundry and yard work. 

A striking example of the actual preference for unam- 
bitious and unintelligent stolid labor is furnished by a job 
analysis of a Buffalo metal working plant for the operation 
of running a punch press, published in a recent number 
of the Annals. The analysis states: "It is very essential 
that the intelligence be not overactive or imaginative, and 
that the employee be such as would consider himself ac- 



HIRING 305 

quiring nothing beyond his expected stipend and the knowl- 
edge of running that kind of a machine." 10 In other 
words the operative should be content to run a punch press 
all his life! 

Mr. C. W. Price, field secretary of the National Safety 
Council, in an unpublished address, quotes from the Out- 
look xl the following significant description of certain work 
in the packing industry : 

"A month ago we stood with a superintendent in a room 
of the canning department. Down both sides of a long 
table stood twenty immigrant women, most of them visibly 
middle aged and mothers. 'Look at that Slovak woman/ 
said the superintendent. She stood bending slightly for- 
ward, her dull eyes staring straight down, her elbows jerk- 
ing back and forth, her hands jumping in nervous haste 
to keep up with the gang. These hands made one simple 
precise motion each second, 3,600 an hour, and all exactly 
the same. 'She is one of the best workers we have/ the 
superintendent was saying. We moved closer and glanced 
at her face. Then we saw a strange contrast. The hands 
were swift, precise, intelligent. The face was stolid, vague, 
vacant. Tt took a long time to pound the idea into her 
head/ the superintendent continued, 'but when this grade 
of woman once absorbs an idea she holds it. She is too 
stupid to vary. She seems to have no other thought to 
distract her. She is sure as a machine. For much of 
our work this woman is the kind we want. Her mind is 
simply all on the table/ " 

The rapid increase in the number of jobs for which 

10 R. J. Burke, "Written Specifications for Hiring," Annals of the 
American Academy of Political and Social Science, v. LXV, May 
1916, "Personnel and Employment Problems," p. 180. 

u Wm. Hard and Ernest Poole, "The Stockyards Strike," 
Outlook, v. LXXVII, p. 887. 



306 THE TURNOVER OF FACTORY LABOR 

lack of ambition, lack of imagination, ignorance and a slug- 
gish mentality in general are positively preferred is one 
of the most serious problems of modern industry. 12 

Some firms will not employ married women living with 
their husbands, not only because they are irregular in at- 
tendance but also because the employers find or claim to 
find that in a large proportion of cases the women are not 
seeking permanent work but are working only temporarily 
during the convalescence of some member of the family 
to help pay doctor's bills or because the husband is 
unemployed or to help pay installments on furniture, etc. 
A large middle western shoe company follows this rule. 
If closer scrutiny of applicants for employment seriously 
limits the ability of married women to obtain work to assist 
in tiding over unemployment, sickness or accident, the need 
of social insurance will become more pressing. 

A number of jobs held for short periods should not be 
conclusive evidence against the stability of the applicant 
since when a man loses a steady job it is often difficult 
for him to secure a satisfactory one. 13 The applicant 
however, should be able to show continuous employment in 
at least one establishment for a year or more within a period 
of a year preceding his application. The longer the con- 

12 There appear to be two distinct tendencies in the development 
of factory work which should not be confused. One is for it to 
require less intelligence, judgment, initiative, ambition and respon- 
sibility among the men in the ranks — the privates of industry. 
This does not mean, however, that the work requires no special 
qualifications and that any one can do it as well as any one else. 
On the contrary, as has been previously pointed out, time and 
motion study and psychological experimentation are revealing more 
and more that the so-called "unskilled" work which it has been 
assumed "any one" could do, requires special qualifications, and 
that careful selection and thorough training are necessary to obtain 
highly efficient workers. 

13 See Chapter VII, section 3. 



HIRING 307 

tinuity of employment in previous jobs, the more favorable 
to the applicant. 

Applicants who have been employed in seasonal indus- 
tries should be given particular scrutiny, especially when 
they make application during the dull season of the seasonal 
industry. Seasonal industries usually pay higher wages 
than continuous ones. The chances are that these appli- 
cants are seeking work only to tide over the dull season 
in the seasonal trade and at the coming of the busy season 
will return to higher paying seasonal jobs. Workers who 
really appear to be leaving seasonal employment to secure 
steady work may be highly desirable applicants. 

The reasons given for leaving previous jobs are par- 
ticularly important as indications of the applicant's probable 
stability. Lack of a definite reason of course practically 
disqualifies the applicant. The reasons given should be 
compared with the facts stated concerning the previous 
position. If the reason given for leaving was dissatisfac- 
tion with wages and the wage the applicant claims to have 
received appears very fair, the chances are that he will 
be dissatisfied with the wages of the job he is seeking or 
that his statement of his previous earnings or of his reason 
for leaving is untrue. 

Likewise if the reason for leaving was that the work was 
too hard and the work which he is seeking is hard or dis- 
agreeable, he is not likely to be satisfied. 

The definite conditions which caused the applicant to 
leave his previous job usually do not appear on the appli- 
cation blank. Simply a general reason such as "dissatis- 
fied," "work too hard/' "wages too low," etc., is given. The 
interviewer wishes to know the precise conditions to which 
the worker objected, what rate of wages he considered 
too low, what conditions of work too hard, what length of 
working day too long, etc. 

The interviewer is interested in why the worker seeks 



308 THE TURNOVER OF FACTORY LABOR 

work in the establishment, whether he has definite 
preferences in regard to the work he does, and what the 
reasons for the preferences are. If the applicant seems 
to be applying at the establishment because he believes it to 
be a good place to work and appears to be genuinely am- 
bitious to better his condition rather than to be looking 
for a "soft snap," he is likely to make a desirable employee. 
The applicant's statement of the kind of work he prefers 
is often unreliable because he is likely to state the kind 
of work in which he believes the firm needs help. His 
answer, therefore, does not necessarily indicate a definite 
preference for the kind of work mentioned. For this 
reason some employment men prefer not to let applicants 
know in advance what jobs are open. An apparently gen- 
uine and definite preference for a particular kind of work 
not based on the desire to do something easy or clean or 
genteel is a strong recommendation of the applicant. 

If the applicant is a minor living at home the interviewer 
wishes to know whether the applicant has to work. Chil- 
dren who do not have to work are likely to be irregular in 
attendance, less interested in their work and more likely to 
quit for trivial reasons. The interviewer wishes to know 
whether the applicant contributes all his or her earnings to 
the family and if so whether this contribution is necessary 
or not. Workers who turn over all their earnings to their 
parents are less apt to be interested in their work than those 
who are permitted to keep a share for themselves, particu- 
larly if the contribution is not really required by the family. 14 

Upon the ability of the interviewer to gain the confi- 
dence of the applicant and to induce him to talk frankly 

"This point is well made by Mr. Richard A. Feiss of the Cloth- 
craft Shops. He states that they give preference to applicants who 
support themselves or whose contribution is a necessity. When 
cases are discovered where the employee is required to contribute 
her entire earnings to the family in absence of necessity, the employ- 



HIRING 309 

and freely depends to a great degree the value of the in- 
formation obtained. Because the faculty of inspiring con- 
fidence and asking questions naturally and unobtrusively 
is a gift not possessed equally by all men is one reason 
why interviewing should be done by specialists rather than 
by foremen. 

Fully as important as the specific information given by 
the applicant is the impression gained of his character. 
The estimation of the character of applicants, however, 
probably constitutes the least satisfactory phase of inter- 
viewing practice. 

The specific qualities of character in which the inter- 
viewer is most interested include honesty, frankness, intelli- 
gence, earnestness, whether the applicant is a man of defi- 
nite aim, whether he understands the meaning of responsi- 
bility, whether he is industrious, painstaking, willing to do 
what he is told, appreciative of good treatment, whether 
he responds to it with loyalty, whether he is willing to 
cooperate with others, whether he is of agreeable person- 
ality and likely to get on well with his associates. 

There is no reliable direct evidence of these traits. Ex- 
ternal manner and appearances, features, facial expression, 
handshake, clothes, attitude toward filling out the applica- 
tion blank, attitude toward the questions asked him and 
character of his answers are all misleading. The man of 
neglected appearance, careless in dress, may be a most 
neat and careful workman, the man with the easy self- 

ment and service department endeavors to arrange that all earn- 
ings above a stipulated amount be left to the worker to be deposited 
in the employees' Penny Bank. This arrangement results in an 
increase in efficiency, he says, from 20 percent upward. "Personal 
Relationship as a Basis of Scientific Management," Bulletin of the 
Society to Promote the Science of Management, v. I, No. 6, pp. 
7,. 8; Annals of the American Academy of Political and Social Sci- 
ence, v. LXV, pp. 34, 35. Talks by the writer with a number of 
employment men confirm Mr. Feiss's observations. 



310 THE TURNOVER OF FACTORY LABOR 

confident air, a quitter, the timid shrinking man may pos- 
sess indomitable persistence, the man with the cordial 
handshake and sociable personality may lack cooperative 
spirit when it comes to submerging himself in the organi- 
zation and making the common purpose his own. Courte- 
ous willingness to fill out the application blank and to 
answer questions does not necessarily mean that the appli- 
cant will be obedient and willing when on the job. The 
interviewer seeks to penetrate beneath these externals and 
to see what is really there. He arrives at his conclusion, 
however, not as a result of a process of conscious and 
systematic analysis of the applicant, but in the same way 
that men in general do, as a result of intuition. Intuitively 
he feels either that the applicant is a desirable or unde- 
sirable sort. Upon the soundness of his intuition depends 
his reliability as a judge of men. 

On account of the unreliability of impressions based on 
the applicant's superficial manner and appearance, some em- 
ployment men insist on a second interview before hiring. 
The external manner and appearance, being more familiar, 
are less distracting the second time and the interviewer 
is better able to see beneath the surface. This practice is 
followed in an eastern printing and binding establishment 
visited by the writer, and Mr. Feiss states it is followed 
at the Clothcraft Shops. 15 

The purpose of the interview is not only to obtain in- 
formation but also to give it, and, paradoxically, giving 
information is one of the best ways of obtaining it. Before 
hiring an applicant the interviewer explains to him care- 
fully the nature and conditions of the job, precisely what 

15 Richard A. Feiss: "Personal Relationship as a Basis for Scien- 
tific Management," Bulletin of Society to Promote the Science of 
Management, v. I, No. 6, p. 8; Annals of the American Academy 
of Political and Social Science, v. LXV, May 1916, on "Personnel 
and Employment Problems," p. 35. 



HIRING 311 

the work is, how much a good man can earn at it (slightly 
understating this as it is desirable that the worker be agree- 
ably surprised by making more than he expects), the time 
required for an average good man to attain the normal 
output (slightly overstating the period), the opportunities 
for promotion and what they pay. If there are difficult 
or disagreeable features connected with the job, these are 
plainly told the worker and, in fact, over-emphasised. Noth- 
ing is gained by hiring a man for a hard disagreeable job who 
is unwilling to do that kind of work and there is a decided 
advantage in having the workman agreeably surprised by 
finding the work easier and more pleasant than he expected. 
Finally, the applicant is told of the ideals and standards 
of the establishment, in order that he may understand from 
the outset that he is coming into an organization in which 
high standards prevail, in which much is expected of every 
member, and which aspires toward an ideal and expects 
every member to contribute toward its realization. 

The reaction of the worker to this talk is an excellent 
indication of his character. If he is looking for something 
easy he is likely to lose interest in the job when told its 
difficulties and when made to understand that much will 
be expected of him. If he is ambitious and eager for an 
opportunity to demonstrate his ability, this is precisely the 
kind of a job which appeals to him. His reaction to the 
information concerning the standards and ideals of the 
organization indicates whether he is likely to show a coop- 
erative spirit. 

b. References from previous employers. 

When the condition of the labor market permits, refer- 
ences from previous employers should be obtained before 
hiring all applicants, except common laborers and perhaps 
some of the lowest grades of semi-skilled , workers. Ex- 
cept in case of an extraordinary shortage of labor it is 



312 THE TURNOVER OF FACTORY LABOR 

possible to delay hiring applicants for from several days 
to a week without losing many due to their obtaining work 
elsewhere. A large Chicago metal working plant, for ex- 
ample, required references before hiring men for semi- 
skilled and skilled positions without interruption until the 
extraordinary labor shortage beginning early in 1916. 

In order to facilitate replies from employers from whom 
references are requested and to assure that all desired 
points of information will be covered, standard forms of 
inquiry have been developed by many firms. To show their 
nature a number are reproduced herewith: 

Engineering & Manufacturing Co. 

Indiana. 

Date 

Gentlemen : 

Mr 

Age Height Weight 

Has applied to us for work as 

And claims to have been in your employ as 

Clock No 



We will appreciate your answers to the questions on 
the reverse side of this sheet, and be pleased to reciprocate 
whenever our records may be of service to you. 

Yours truly, 



Employment Dept. 

I hereby authorize you to furnish the information re- 
quested. Signature of Applicant 

(Form A) 



HIRING 



3i3 



Was he employed as stated? 

Length of service? Character? 



PLEASE CHECK WHICH 



REASON FOR LEAVING 


SKILL 


PRODUCTION 


HABITS 






Own accord 

Laid off 

Discharged. 




Excellent 
Average . 
Poor. . . . 




Fast 




Regular. . . 
Temperate 
Obedient. . 






Medium . . 



























Gave leaving notice? Would you reemploy? 

Comments 

Signed 

Date 

(Form A, Reverse) 



191 



M 



Dear 



M has applied to us for a 

position, giving your name as that of a former employer. 
It is necessary for us to verify applicant's personal charac- 
ter and record of time. We shall appreciate, therefore, 
an answer to the questions below at your earliest conveni- 
ence, and assure you that your reply will be held strictly 
confidential, and that we shall be glad to reciprocate at 
any time. 

Sons Co. 

Per 



3 i4 THE TURNOVER OF FACTORY LABOR 
Data Regarding Employment With You. 

Department 

Worked under 

Entered your employ ? Habits good while in your 

employ ? Left your employ ? 

Strictly honest in every way? Position filled? 



Discharged or resigned and why ? , 

Name other places where applicant has worked? 
Work satisfactory ? , 



Additional Remarks 



Signed 

(Form B) 

has applied to us for 

a position as 

On his application he stated that 

We require all applicants to furnish responsible references 
as to their respectability, qualifications for the position 
named, etc., and shall feel greatly obliged, and treat confi- 
dentially replies to questions below, together with any other 
information you may give us concerning him. 

Yours truly, 



By. 



HIRING 315 

Is his statement correct ? 

Is he, to your knowledge, of good character and habits ?. . . . 
Is his general conduct such as to entitle him to the confi- 
dence of his employers ? 

Do you consider him competent to fill the position he 

applied for ? 

Remarks : 



Dated 191... Signed, 

(Form C) 



The value of references from previous employers is sub- 
ject to great diversity of opinion. Employment managers 
who have developed departments recognized as models for 
high grade, painstaking work are to be found on both sides 
of the question. The difference of opinion in regard to 
the value of references appears to be largely due to failure 
to analyze completely their possibilities. 

The objections to references are: 

1. The unwillingness of employers to hinder former em- 
ployees in securing work elsewhere by making derogatory 
statements concerning them, even when the statements are 
true. This attitude is almost universal. A number of 
managers have stated to the writer that it is a matter of 
definite policy with them never to make derogatory state- 
ments concerning a former employee. Employment men 
state that they find this unwillingness to hinder former em- 
ployees in obtaining work elsewhere seriously detracts from 
the value of references. 16 

19 Some employers interviewed believed it to be improper, except 
in very exceptional cases, for them to give information which would 



316 THE TURNOVER OF FACTORY LABOR 

2. The worker's success at his previous job is an uncer- 
tain criterion how he will succeed at another. 

3. Even if the former employer frankly expresses an 
unfavorable estimate of the worker it is far from con- 
clusive evidence that the worker is undesirable. Aside 
from the obvious fact mentioned above that the man may 
have been unsuited to the work, the record a man makes 
in any shop depends largely on how he is treated — in other 
words, on the management as well as on the worker. Even 

hinder a former employee in securing a job. Except in cases 
where a man was seeking work where his incompetence might 
endanger lives or large amounts of property, the writer is in- 
clined to agree with their position for the following reasons: 

1. Even assuming that the applicant was dismissed justly for 
incompetence or misconduct, it is impossible to see why a past 
offense should hang over him to prevent him from obtaining work 
elsewhere. He paid the penalty by losing his job. He is entitled 
to the opportunity to make a new start. 

2. Incompetence at one job is no indication that the worker will 
be incompetent at other jobs. 

3. In many cases of discharge considerable doubt exists whether 
the fault was the workman's more than the foreman's. 

This point was made by an eastern manufacturer who gave it 
as one reason for refusing to give unfavorable information con- 
cerning former employees. He stated frankly that there were 
many cases of discharge in his plant (and his plant was an excep- 
tionally well managed one, with a remarkably low turnover for 
a long period of years in spite of the arduous character of the 
work) in which the foreman or third parties were probably as 
much to blame as the man discharged. Tactless handling may 
have impaired the man's efficiency, although if judiciously handled 
he would have developed into a good man ; the personalities of 
the foreman and workman or of a fellow workman may have been 
incompatible ; in the stress of getting work out on schedule the 
foreman may have made demands which his absorption in getting 
out the product prevented him from seeing were unreasonable. In 
an argument over the subject the man flared up and told the fore- 
man "to go to hell" and for the sake of discipline it was necessary 
to discharge him, although the provocation may have been great. 



HIRING 317 

a good man who is treated with little consideration by 
a tactless, autocratic foreman is likely to make a poor 
record. When he feels abused and dislikes the company, he 
does no more work than is necessary, his discipline and 
his general attitude may be poor. A poorly managed shop 
will have comparatively few favorable recommendations 
to make of its past employees, simply because poor manage- 
ment brings out the bad rather than the good qualities in 
men. A well managed shop, on the other hand, can recom- 
mend a larger proportion of its employees. 

4. In case of men discharged the employer's statement 
of the reason is often inaccurate. Many discharges are 
provoked by tactlessness of foremen rather than by in- 
tractability of workmen. 

In spite of these drawbacks references are of value. 
Some employers give frank answers concerning previous 
employees. One employment man writes that in his ob- 
servation the tendency to be frank is increasing as the 
custom of making inquiries concerning applicants becomes 
more prevalent. He writes : 

"It is my experience that employers are becoming more 
careful of the letters they write. Occasionally an employer 
feels the least he can do for a workman is to say a good 
word for him, but most employers to-day, wishing to re- 
ceive similar answers themselves, I think, go out of their 
way to write a careful and fair estimate of the workman's 
qualifications in their business, realizing even if critical, 
this does not prevent the man from getting work in some 
other line where he is better fitted, unless criticism is made 
on account of character." 

The employment man of a piano manufacturer assures 
me that practically all of their requests for information 
are answered, and that in most cases the replies appear 



318 THE TURNOVER OF FACTORY LABOR 

to be frank. In many instances the writers have not hesi- 
tated to express unfavorable estimates. 

Although many employers will not make unfavorable 
comments concerning past employees, usually they will not 
knowingly make favorable comments which are unwar- 
ranted. Failure to mention unfavorable qualities may be 
no proof that unfavorable ones do not exist, but the favor- 
able estimates can usually be relied upon as true, to the 
employer's best knowledge and belief. 

References from previous employers are valuable as 
checks upon the applicant's statements of the work he did, 
the pay he received and the length of time he was em- 
ployed. The applicant is likely to misrepresent the work 
he did in order to show experience at the work for which 
men are being sought. If he knows that the firm is looking 
for lathe hands he may say that his previous work was 
as a lathe hand when as a matter of fact it was bench 
work. This is true especially of men who are seeking to 
advance into more skilled and higher paying work. The 
applicant is likely to overstate the rate of pay he received 
in order to give the impression that he is worth more than 
he really is. Finally, to convince the interviewer that he 
is not a floater and to avoid giving the suggestion, which 
a short duration of employment at any place gives, that 
his services were unsatisfactory, the applicant often over- 
states his period of service with previous employers. As 
a much needed verification of the applicant's statements 
on all of these points references from previous employers 
are decidedly valuable. 

In hiring children references from teachers are desira- 
ble. Employment men as a rule state that teachers are 
inclined to be overgenerous in praise of former pupils. 
When the employment man establishes close contact with a 
school, becomes acquainted with the teachers and encour- 
ages them to send him promising graduates, the teachers 



HIRING 319 

become more frank and conservative and references from 
them may be decidedly valuable. 

7. Means of avoiding the hiring of floaters. 

The best means of avoiding the hiring of floaters is not 
to hire on the day of the interview. The floater wishes 
a job at once. He will not usually return for a second in- 
terview and will not wait for the references he has given 
to be heard from unless jobs are very scarce. 

If the applicant is too fastidious about the job, if he 
wishes a job made to 'order, he is likely to be a floater. On 
the other hand if he goes to the other extreme and is 
completely indifferent concerning the nature of the work, 
saying "any kind," "anything you got," he is also likely 
to be a floater. 

Some floaters take pride in boasting of the number of 
shops and cities in which they have worked. 

When two or more workers apply for work together 
they are likely to be floaters. If one becomes dissatisfied 
and leaves, the other is likely to leave also. 

8. Other points in regard to employment practice. 

A common practice when the hiring is done by foremen 
or an employment department of low standards is to at- 
tempt to beat the applicant down from the wage he states 
he wishes to the lowest which the interviewer believes he 
can be induced to accept. This practice is especially likely 
to arouse the resentment of the new man. He is quick to 
realize that the employment man is seeking to beat him 
down to the lowest he will accept. The applicant knows 
that the interviewer believes that he has him at a disad- 
vantage because the applicant needs the job more than the 
employer needs him. This taking advantage of his un- 
employment appears particularly unfair to the worker. By 
so doing the foreman or employment man earns for the 
firm the workman's prejudice against it at the very outset, 
when he is most impressionable. The workman is sure 



320 THE TURNOVER OF FACTORY LABOR 

that the employer is unjust, that he cares little for his men, 
that he will take advantage of them at every opportunity. 
He starts work with the idea that it is a purely dollars 
and cents proposition, in which both he and the employer 
give the least for the most they can gti. He withholds his 
cooperation. Appeals to his loyalty will be met with cynical 
indifference. Why should he be interested in the business 
and success of an employer who takes advantage of his 
unemployment to beat him down to the lowest cent he will 
take? Finally, when he has saved a little or when times 
are better, he will leave unless given a raise. When the 
raise is granted, however, it comes not as a reward for 
merit and good service from an appreciative employer, 
which wins his gratitude and loyalty, but rather as the pay- 
ment of long withheld compensation — no more than his due 
and for which he feels no appreciation. 

Instead of attempting to bargain with the applicant the 
factory should have a definite scale which is paid to all be- 
ginners at the job without exception and a special effort 
should be made to get men to whom this scale represents an 
increase over the rate at their last job. 

Of particular importance in obtaining high grade men 
is the time allowed the employment department to fill re- 
quisitions. The employment man of a shoe factory says 
that he can fill positions on twenty-four hours' notice as well 
as he can in four or five days. The employment man of an 
automobile company also asks only one day. In hiring 
semi-skilled or skilled men the majority of employment men 
wish a longer time to be assured of getting a good man. 
The employment man of an adding machine manufacturer 
puts the notice he should receive at not less than two or 
three days. The employment manager of a manufacturer of 
tags and paper novelties says that in a majority of cases he 
should have a week's notice. The employment manager of a 
manufacturer of filing systems wishes three days' notice in 



HIRING 321 

normal times and says that a week is a good thing. The 
employment manager of an automobile factory puts the 
minimum notice he should have as one day, but says the 
more notice the better. Another automobile manufacturer 
wishes three days. The employment man of a button com- 
pany wishes as much "notice" as he can be given. 

Proper notice to the employment man involves : ( 1 ) ob- 
taining notice of prospective increases in the force; (2) 
obtaining notice from workmen intending to resign. 

Adequate notice of increases in the force depends on the 
systematic planning and scheduling of work in advance 
and the notifying of the employment man of the additional 
men needed. In so far as unforeseeable emergencies ne- 
cessitate increases, notice is of course out of the question. 
The hiring of new men may be postponed in such cases, 
however, by delaying regular work and by the use of emer- 
gency squadrons to assist on the emergency work. 

The main problem is to induce workmen to give notice 
of their intention of resigning and this problem has re- 
ceived inadequate attention. Many firms which maintain 
elaborate and up-to-date employment offices make little or 
no effort to obtain such notice. Firms which endeavor 
to obtain notice from employees find it difficult to secure. 
A firm making tags and paper novelties which makes special 
effort to get notice estimated in 19 16 that they obtained 
it in half the cases. The employment man of a Detroit 
automobile company estimates that they receive notice 
in half of the cases but thinks the proportion can be made 
larger. The labor supervisor of another Detroit automo- 
bile plant which has a rule (which is not rigidly enforced) 
requiring men to wait until the end of the pay period for 
their pay unless notice is given, estimates that twenty per- 
cent of the skilled and semi-skilled men resigning give 
notice. In a group of 191 men resigning from this plant 71 



322 THE TURNOVER OF FACTORY LABOR 

gave notice, in a group of 21, one gave notice. These 
groups included men from all parts of the factory. This 
indicates that the labor supervisor's estimate is conser- 
vative. A dyeing and bleaching plant situated in the vi- 
cinity of large munition works furnished me the following 
data on the number of resignations with and without notice : 



Year 


All 
resignations 


With 
notice 


Without 
notice 


Percent giving 
notice 


1913 
1914 

1915 


i,473 
668 

1,329 


649 

375 
449 


824 

293 
880 


44.O 
56.1 

33-8 



Note the effect of changes in the labor market upon the 
proportions. In 1913, a year of prosperity, the number 
leaving without notice slightly exceeded the number giving 
notice. In 1914, a year of depression, those giving notice 
exceeded by a substantial amount those giving no notice. 
The year 191 5, which in regions remote from war indus- 
tries was for the most part a year of slack labor demand, 
was a year of brisk labor demand in the munition center 
in which this plant is located. In this year the proportion 
giving no notice was larger than in either of the other 
years. . 

The number of resignations with and without notice in 
a large rubber goods manufacturing establishment over a 
series of years was: 



Year 


All 
resignations 


With 
notice 


Without 
notice 


Percent giving 
notice 


1911 


, 5,231 


1,692 


3,539 


32.3 


1912 


15,293 


4,144 


11,149 


27.I 


1913 
1914 


I9,l6l 
4,176 


4,157 
1,201 


15,004 

2,975 


21.7 
28.8 


1915 
1916 


5,037 
23,124 


I,8l6 
6,768 


3,221 
16,356 


36.1 
29-3 



HIRING 323 

Here the proportion giving notice shows a less marked 
variation with prosperity and depression. An unusually 
small portion gave notice in 191 3, a year of prosperity, 
and an unusually large proportion in 191 5, a year of de- 
pression, but in 1914 and 1916, years respectively of de- 
cided depression and of decided prosperity, the proportion 
giving notice is neither unusually high nor unusually low. 

We should expect notice to be given less frequently 
in years of prosperity than in years of depression because: 
(1) in times of depression, when jobs are scarce, men take 
more thought of leaving a good record to help them in 
case they ever desire reemployment, while in prosperous 
times when jobs are plentiful men are more care-free about 
such matters; (2) old employees are more likely than new 
ones to give notice. Old employees constitute a larger pro- 
portion of the total leaving in times of depression than in 
times of prosperity, because in times of prosperity large 
numbers of new men are hired who quit after a short period 
of service. 

In order to induce workmen to give notice it is a common 
practice to compel them in the absence of a stipulated notice 
to wait until the end of the pay period for their pay. This 
rule, however, rarely is strictly enforced and cannot be 
without working frequent injustice. Some workmen are 
compelled to leave by circumstances beyond their control 
which permit no notice. Foremen realize this and are in- 
clined to let workers have their pay when they give some 
such reason as leaving the city even though they doubt 
the workers' veracity. The rule of withholding pay is re- 
sponsible for a large number of cases in which "leaving 
town" is fictitiously given as the cause for leaving. Even 
when enforced, the rule is ineffective as a means of dis- 
couraging resignations without notice. If a workman is 
attracted by an opportunity to make better money he will 



324 THE TURNOVER OF FACTORY LABOR 

take advantage of it at once in order to be sure of obtaining 
the job. He will not risk losing a permanent benefit because 
of the inconvenience of having to go back for his pay. The 
rule, however, often results in the employment office losing 
the opportunity to interview the man before leaving and to 
learn his reasons for leaving, because when the worker sim- 
ply receives his pay in the regular manner the employment 
office cannot conveniently get in touch with him. If the 
worker is permitted to obtain his pay at once by an order 
signed by the employment manager, the employment office 
obtains an excellent opportunity to interview him and to 
learn his reason for leaving. By this plan also the employ- 
ment office secures the opportunity to interview the worker 
usually before he has obtained work elsewhere and may pos- 
sibly induce him not to leave. When he returns for his pay, 
however, he usually has obtained another job and even if an 
interview with him is obtained, the opportunity to hold him 
is gone. 

The practice of holding back a portion of the worker's 
pay causes him to give notice in case he intends to work 
up to pay day. Holding back several days' pay is usually 
unavoidable because it is impossible to pay up to the day 
on which the pay is distributed. If pay day is Saturday, 
the payments will usually cover work done up to Wednes- 
day or Thursday night. If a workman intends to quit on 
Saturday and wishes his pay for work done since 
Wednesday or Thursday, he must notify the time-keeper 
or payroll department in order that it may be arranged 
to give it to him. In this way the firm obtains some notice 
of the worker's intention of quitting, although often the 
notification may be given only in the morning of the day 
of leaving. 

Mr. Richard A. Feiss states that the Clothcraft Shops 
pay a bonus for notice equal to a day's pay for every 



HIRING 325 

week's notice up to and including four weeks. 17 A 
bonus for notice is also given by the dyeing and bleaching 
works mentioned above. 

The relations between the men and management greatly 
influence the men's willingness to give notice. If the re- 
lations are friendly the men are inclined to give notice be- 
cause they feel it is the fair thing to do, because they wish 
to leave a good record at a desirable place of employment 
to which they may wish to return, and because they do not 
fear that perhaps they will not be treated with consider- 
ation if it is known that they are about to leave. If re- 
lations are not cordial, however, the workers not only 
feel no obligation to give notice as a matter of fairness, 
but are likely to feel toward the firm a positive resentment 
which disinclines them to go out of their way to assist it. 
They have no desire to return to the place, and are afraid 
that if the firm knows their intention to leave they may 
be taken advantage of during their remaining days of em- 
ployment. The fear that employers will show less con- 
sideration to men who they know are about to leave is 
widespread and is a serious obstacle to inducing workers to 
give notice. 

" Richard A. Feiss, "Personal Relationship as a Basis of Scientific 
Management," Bulletin of Society to Promote the Science of 
Management, v. I, p. 13; Annals of the American Academy of 
Political and Social Science, v. LXV, May, 1916, on "Personnel and 
Employment Problems," p. 51. 



CHAPTER XV 

BREAKING IN THE NEW WORKER 

i. Importance of the breaking in process. 

Efficient hiring is the first method of following up the 
advantageous position which the enterprise attains by the 
establishment of the fundamental prerequisites for the re- 
duction of the turnover — liberal wages, steady work, miti- 
gation of physical strain, and provision of good working 
conditions and short hours. The second follow-up method 
is a careful and well planned system of breaking in new 
workers. Obviously the better the grade of workers hired, 
the more important becomes the breaking in process, be- 
cause every worker who now leaves because of failure to 
become adapted to his job and surroundings and every 
worker who is not developed to the extent of his capacity 
represents a greater loss to the firm. The provision of bet- 
ter working conditions in order to attract a superior grade 
of workers and the more careful selection of men as the 
result of superior employment methods enhance the im- 
portance of the breaking in process and require that closer 
attention be paid to breaking in men in order that the full 
benefits of the better working conditions and of the better 
hiring methods may be realized. 

The breaking in period is the most critical time in the 
worker's career in the establishment. This is shown by 
the large number of workers who leave in the early periods 
of employment. In 7 plants listed in Table V on p. 48, an 

326 



BREAKING IN THE NEW WORKER 327 

average of 58.7 percent of all workers leaving had been 
employed less than three months. 1 

The reasons why the breaking in process is especially 
critical are: 

1. The new worker feels himself more or less a stranger 
in the place, and this feeling of strangeness, as has been 
pointed out, tends to render him more than ordinarily criti- 
cal of conditions in the shop. He is inclined to see the 
unfavorable features more prominently than the favorable 
ones. 

2. The impressions of shop and management formed 
by the worker during this period, being first impressions, 
are likely to stay with him and influence his future atti- 
tude toward the management. 

3. The worker's job during this period is more difficult 
than at any other time because he is in the learning stage. 
The new employee is likely to be somewhat nervous and 
lacking in self-confidence during the learning period and 
this increases his difficulty of learning and his liability to 
discouragement. 

2. Introduction of the worker into the organization. 

The first step in the breaking in process is the introduc- 
tion of the worker into the organization. The sooner and 
more thoroughly that he is made to feel himself a part of 
the organization the more quickly his critical attitude due to 
his feeling of strangeness disappears. 

The new worker is made to feel himself a part of the 
organization by the organization's taking an interest in 
him, by its convincing him, through individual attention 
shown him and assistance extended to him, that it is in- 
terested in his success. This not only causes the worker 

*In one instance the percentage figure given was the proportion 
of all leaving who had been employed less than 3^ months; in 
another case it was the proportion of all leaving who had been 
employed less than 10 weeks. 



328 THE TURNOVER OF FACTORY LABOR 

to feel himself to be a part of the organization and less 
of a stranger but it wins his gratitude and arouses his 
loyalty and thereby still further prevents him from de- 
veloping a hypercritical attitude. The elementary fact 
cannot be too firmly stressed that the degree of tolerance 
which workers show toward the more or less disagreeable 
features that are an almost inevitable accompaniment of 
most jobs depends largely upon their general attitude. 

The new worker should not be told to report directly to 
the foreman of the department in which he is to work, 
or to the head of the instruction department, if there is 
one. He has not met these persons and the fact that he 
must look up and introduce himself to strangers tends only 
to accentuate his feeling of strangeness. The foreman or 
chief instructor, moreover, may be busy and unable to 
give the worker immediate attention. It is important that 
new hands should not be compelled to wait to receive 
attention and should not be left with nothing to do. 

The worker should be told to report to the employment 
department, the location of which he knows and where 
there is some one he has met. In establishments which 
give most attention to introducing workers into the organi- 
zation, the worker is usually not taken directly to work. 
In the first place he is usually made familiar with the plant. 
If there is a plant restaurant, lunch room, recreation room 
or library, he is shown its location. If individual lock- 
ers are provided, he is assigned one and is shown its lo- 
cation. If there is a service or welfare department, the 
new worker may meet the head. In fact it is the practice 
in some plants for the employment department to turn 
the new worker over to the service department at once 
and for the service department to perform the work of 
introducing the worker into the new organization. This 
has the advantage of giving the service department a better 
opportunity to become acquainted with the worker. 



BREAKING IN THE NEW WORKER 329 

At the time of the interview before being hired the 
worker was told the standards of the firm and what would 
be expected of him. It is unnecessary, therefore, to ex- 
plain these things to him. He is given a booklet of rules 
and information, however. This booklet, traditionally 
known as the book of "Rules and Regulations," is now 
frequently called by a name less likely to arouse preju- 
dice. "Valuable Information for Guidance of Employees," 
"Employees' Handbook," "Book of Information and In- 
struction," "Information for Employees," are the titles of 
some of the books collected by the writer. One company 
has the worker's name typewritten on the cover as they 
believe this renders him less likely to throw away the book 
without reading it. Other companies leave blank pages 
for memoranda in the back of the booklet. 

After these preliminaries the worker is taken to his fore- 
man or to the instruction department. The worker should 
not be compelled to wait before receiving attention from 
the foreman or the instructor unless this is absolutely 
unavoidable. Failure to give immediate attention to the 
worker gives him the impression that not much interest is 
being taken in him — precisely the impression which it is 
important to avoid. 2 New men on account of their suscep- 
tibility to discouragement and dissatisfaction require ex- 
ceptionally considerate treatment from foremen, and fore- 
men should be impressed with the importance of special 
care in dealing with them. 

The most important factor in ridding the new worker 

2 The employment manager of a western manufacturer of an 
automobile accessory found that a considerable number of workers 
were leaving before starting work simply because the foreman com- 
pelled them to wait while he was busy at something else. While the 
writer was interviewing the employment manager, a worker hired 
as a machine hand left in disgust without starting work because 
he had waited two hours without receiving attention from the 
foreman. 



330 THE TURNOVER OF FACTORY LABOR 

of his feeling of strangeness and in assimilating him into 
the organization is his relations with his fellow workmen. 
One of the numerous disadvantages of national, religious, 
or fraternal cliques is the barrier which they impose upon 
new men not belonging to the nation, religion, or fra- 
ternal order, in developing cordial relations with their fel- 
low workers. In order that the development of acquain- 
tance between new men and old hands may be aided, it is 
the custom in some plants to introduce the new worker 
to an old employee who is made responsible that the new 
man does not go off and eat his lunch alone and who ac- 
quaints him with other workers. The factor of funda- 
mental importance in the assimilation of new workers into 
the organization, however, is the existence of a well de- 
veloped cooperative spirit. Where a vigorous group spirit 
exists the absorption of new men into the organization will 
take care of itself and cause the management little concern ; 
where this spirit is lacking, the assimilation of new men will 
be more or less of a problem. 

3. Instruction of new workers. 

The introduction of workers into the organization, al- 
though important and worthy of careful attention, is of far 
less consequence than the training of workers for their 
new jobs. 

The instruction of workers is of particular importance 
from the standpoint of reducing the turnover because: 

1. Teaching the workman his new job offers by far the 
best opportunity the management has of convincing him 
that it feels a real interest in his success. The preliminary 
work of causing the new worker to feel less of a stranger 
in the plant offers the management opportunity to show him 
careful attention but is less important because it concerns 
far less important matters. Substantial assistance extended 
to him in learning the job goes a long way toward winning 
his appreciation because the benefits he derives from it are 



BREAKING IN THE NEW WORKER 331 

so tangible and substantial. As men are loyal to those who 
show an interest in them and attempt to assist them in their 
difficulties, the help given the worker in mastering his job in 
the early stages when it is new to him and more difficult than 
at any later time furnishes an unequaled opportunity for 
winning his good will and for creating an attitude on his 
part which will go far toward permanently establishing 
good relations between him and the management. 

2. Efficient instruction of the worker in his job by miti- 
gating the fatigue and difficulties due to ignorance of how 
to do the work, lessens the danger of his leaving because 
the work is too hard for him or because he is discouraged 
over his inability to master it. 

3. Efficient instruction increases the worker's earnings 
and lessens the danger that he will leave because his earn- 
ings during the learning period are low and because he feels 
that there is no money in the job. 

4. Efficient instruction shortens the learning period dur- 
ing which the worker is unable to produce the normal out- 
put and thus shortens the period during which the risk of 
his leaving is particularly great. The more rapid acquisition 
of proficiency which efficient instruction makes possible is 
in itself an encouragement to the worker. The pleasure he 
derives from more rapid progress causes him to be more 
contented generally, to see things in general in a favorable 
light. An important effect of the discouragement which is 
so often caused by difficulties in the job or by low earnings 
during the learning period is that it leads the workers to 
see things in general in a pessimistic light. 

5. Because of the suggestible and impressionable state 
of mind of the worker during the learning period and be- 
cause of the peculiar opportunity the person who helps him 
has to win his confidence, imparting instruction offers an 
exceptional opportunity to educate the workman in the 
ideals and standards of the organization, and to infuse him 



332 THE TURNOVER OF FACTORY LABOR 

with the right attitude toward his work. An efficient corps 
of instructors can influence the attitude of workmen toward 
their work and toward the management because : 

a. They can do much to create an interest among work- 
ers in their work, to give them a vision of its importance and 
significance, to foster a pride in it and a spirit of workman- 
ship. This attitude does much to enable the workman to 
derive pleasure from his task and to render him more con- 
tented as well as more efficient. 

b. They can be of substantial influence in arousing am- 
bition and definite aim in workers. They can give a vision 
of the possible future ahead for efficient workmen and ad- 
vance the workers' faith in their ability to advance to bet- 
ter paying and more responsible jobs. One of the prin- 
cipal reasons for lack of ambition among workers is their 
lack of confidence in their ability to succeed. A certain self- 
confidence and hope of success is necessary to nourish am- 
bition. This is precisely what workers frequently lack, and" 
encouragement to have faith in their own abilities is one of 
their greatest needs. The importance of definite aims in 
preventing aimless drifting, resignations for trivial reasons, 
unwillingness to make the effort necessary to master a job, 
etc., is too obvious to require discussion. 

6. Close supervision during instruction offers an excep- 
tional opportunity to discover misfits and to transfer them 
to other work before they become dissatisfied and leave. 

Three methods are ordinarily used to instruct new men in 
their work: 

i. Instruction by the foreman. 

2. Instruction by the gang boss. 

3. Instruction by experienced workmen. 

These methods are unsatisfactory for the following rea- 
sons: 

1. Adequate instruction presupposes that the instructor 
has worked out the best way to do the job. One of the most 



BREAKING IN THE NEW WORKER 333 

important facts which motion study has demonstrated is 
that there are scarcely any operations so simple that the 
average man does them naturally in the simplest, easiest, 
and quickest way. In order to ascertain the best way, long 
and painstaking study and experiment are necessary even 
for simple operations. The foremen, the gang bosses, or the 
workmen assigned to teach the task are unable to make such 
investigations and consequently the method which they 
teach is not the least difficult, the least fatiguing, and the 
quickest. 3 

2. Because the foreman, gang boss, or workman as- 
signed to teach the job has not intensively studied the 
operation, he is more or less unfamiliar with the errors 
made by inexperienced hands, and with features of the 
work which are particularly difficult to inexperienced hands. 
Even more ignorant is the foreman or old worker of the 
reasons why particular features about the operation are 
difficult to learn and by what changes in the methods of 
doing the work the difficulties of the new hand can be les- 
sened. In this connection it should be noted that new work- 
ers have widely varying reasons for their difficulties. The 
instructor, therefore, should have the ability to diagnose 
what the reason for any difficulty is and this ability inex- 
perienced instructors such as foremen or workmen often 
lack. 

'Motion study may be said to have demonstrated that there 
is no such thing as "unskilled work," in the sense that the average 
man without careful instruction will perform the operation in the 
easiest and quickest way. Not only does the average man not 
naturally perform the operation in the easiest way, but to discover 
the best way requires analytical powers, knowledge and apparatus 
which he does not possess. This is true even of what appear to 
be the most simple and unskilled operations. Shoveling and fold- 
ing cloth are examples of comparatively simple operations in which 
motion study has revealed vast possibilities for improvement over 
the haphazard methods which workers naturally use. 



334 THE TURNOVER OF FACTORY LABOR 

3. The foreman, gang boss, or workman-instructor lacks 
training in how to impart instruction and often the natural 
ability to impart it. The instructor must not only be able to 
give information clearly and simply but he must understand 
the psychology of the new hand and adapt his method to it. 
He must understand that he is dealing with a person who 
is more or less nervous, perhaps decidedly lacking in self- 
confidence, who is on this account likely to misunderstand 
instructions and make foolish mistakes, and who is par- 
ticularly susceptible to discouragement. Foremen and oth- 
ers, if not natural teachers, fail to allow for these facts, at- 
tribute mistakes to stupidity or to incompetence rather than 
to nervousness, and make the fatal error of losing patience 
and of frightening or angering the worker. 

4. The personality of the foreman, gang boss, or work- 
man assigned to instruct may render him undesirable as an 
instructor. This is especially likely to be true of foremen of 
the old school, products of the "drive" system, which pro- 
duces disciplinarians and drivers. Their gruff, curt man- 
ner is likely to aggravate the nervousness of the new hand, 
and to render him reticent about asking assistance. Fore- 
men of the old school have also frequently developed the 
habit of severely criticising mistakes but not of commending 
good work. The new hand more than any other needs en- 
couragement and commendation for good work. 

5. Foremen, gang bosses, and workers assigned to give 
instruction do not feel sufficient interest in, or responsibility 
for, their instructional work. They have other duties to 
perform and wish their instructional work to interfere with 
these duties as little as possible. As a result the new work- 
ers fail to receive sufficient supervision and attention from 
them. 

Three principal methods have been adopted to improve 
the training of new workers over the training given by fore- 



BREAKING IN THE NEW WORKER 335 

men, gang bosses or non-specialist workmen instructors. 
These methods are : 

1. Instruction by specially appointed workers. 

2. Reformed plan of instruction by gang bosses. 

3. Instruction by a special training department. 

1. The plan of instruction by specially appointed work- 
men-instructors differs from the instruction which is now 
given by experienced workers in that the workman-instruc- 
tor, instead of being selected to teach the new man in a 
particular case, is permanently employed to act as instructor 
for all new men hired for a given operation or group of 
operations. In addition to being guaranteed against a loss 
in earnings below their average rate while engaged in in- 
struction, the workmen-instructors are usually given a 
bonus. For example, in an eastern plant making paper 
novelties workmen-instructors receive about $3 per week 
more than is earned by the best workers on the operation. 

This plan has the advantage that the workers selected 
usually possess qualities of personality and aptitude for 
instruction which particularly fit them to train new men; 
that, being used to instruct all new men at the particular 
operation or operations, they acquire greater familiarity 
with the nature of the operation and the difficulties of inex- 
perienced workers at it; and, most important of all, that 
being specially designated instructors they feel a greater re- 
sponsibility for the satisfactory performance of their work 
and give more attention to studying the problems of instruc- 
tion and more time and attention to teaching the new men. 
An advantage in having the instruction given by one of the 
regular workers is that he serves as a means by which the 
new hand becomes acquainted with the other men. 

The workman-instructor system, however, does not elim- 
inate all the disadvantages of prevailing plans. The work- 
men-instructors lack sufficient training and ability to work 
out for themselves the ideal way of performing the opera- 



336 THE TURNOVER OF FACTORY LABOR 

tion which they teach. If motion studies,, have been made 
of the jobs and the best methods of doing the work ascer- 
tained by the efficiency department, this objection, of 
course, does not apply. Workmen-instructors lack train- 
ing in methods of imparting information and usually are 
less able than professional instructors to work out effective 
methods of presenting information. They are likely to be 
weak in the ability to diagnose precisely what troubles 
workers who have difficulties. The regular work of the 
workmen-instructors is likely to interfere with their giv- 
ing adequate attention to new men. Rush times, when the 
workmen-instructors are most busy with their regu- 
lar jobs, are precisely the times when the greatest number, 
of new men are being hired and when the workmen-in- 
structors are most needed for instructional work. 

In order to assure that high instructional standards are 
maintained, it is desirable that the workmen-instructors be 
under the supervision of a professional who devotes full 
time to the direction of training and is definitely responsible 
for its efficiency. The duties of such a supervisor are to 
oversee the work of the workmen-instructors, to correct 
their faults, to weed out those who prove not to be natural 
teachers, to imbue the force of instructors with pride in and 
enthusiasm for their work, and to develop an esprit de 
corps. The professional instructor in essence is a teacher 
of teachers. His task is to teach the workmen-instructors 
how to teach others. 

An important advantage of the system of workmen-in- 
structors is that it furnishes excellent material for fore- 
men and gang bosses. The workmen-instructors not only 
acquire an intimate knowledge of the work but they also 
acquire an exceptional understanding of human nature 
and of the management of men, for there is scarcely a bet- 
ter means of studying human nature than by attempting 
to teach. Their instructional work also develops knowl- 



BREAKING IN THE NEW WORKER 33; 

edge of the difficulties which workers experience, patience 
and sympathy with them and the desire to be of help to 
workers — an attitude infinitely superior to the brusque, of- 
ficious, and autocratic manner so prevalent among minor 
executives under the "drive" system of management. The 
present tendency of opinion is that the foreman should 
so far as possible be a helper rather than a driver and in- 
structional experience tends to develop this sort of men. 
The plan of workmen-instructors has been successfully 
used by the Packard Motor Car Company. In many of 
its departments it has an experienced machinist who is 
given from 10 to 12 men to train to operate a particular 
machine such as drill press, grinder, milling machine, lathe, 
boring mill, gear cutter, etc. The work is under the gen- 
eral charge of a man who was formerly one of the best 
foremen. The learners are kept continuously on the one 
machine. They do not learn how to do simply one or two 
jobs but are given an all-round experience on the single 
machines. At first they are given rough jobs and gradu- 
ally progress to more exacting work. During their train- 
ing the men are under the supervision not of the foremen 
of the department but of the instructor, and are responsible 
to him. During the training period the men are not held 
responsible for the amount of their production but are 
held strictly for the scrap which they make. The train- 
ing period lasts for about two months. A report on the 
worker is then made to the employment department. If 
it is favorable he is given a raise and transferred to the 
authority of foremen on the same footing as other men 
in the department. The plan is said to give splendid re- 
sults. 4 

4 Based on an account by Mr. H. F. Dumbleton before the Na- 
tional Association of Corporation Schools, Proceedings, 1915, pp. 
763-767. Mr. R. H. Tawney in his work on Minimum Rates in the 
Tailoring Industry, pp. 143-144, gives an account of the experience 



338 THE TURNOVER OF FACTORY LABOR 

2. The reformed system of instruction by gang bosses 
occurs under "scientific management." The gang boss, or 
"group supervisor" as he is sometimes called, has charge 
of a small group of ten or twelve men. Often the group 
supervisor himself works as an operative part of the time. 
Sometimes the group supervisors are the only executives 
in direct charge of the men — the departmental foreman- 
ship being abolished. 

Instruction of new men by group supervisors under 
"scientific management" differs radically from the in- 
struction of new workers by the gang bosses under pre- 
vailing systems of management. In the first place, stand- 
ard methods of performing operations have been worked 
out by means of motion studies, so that instead of the new 
worker's learning the method which the gang boss hap- 

of certain manufacturers in the English tailoring industry with 
the training of workers by specially appointed workmen-instructors. 
Attention to the training of workers was forced upon the manu- 
facturers by the establishment of minimum wage rates in the 
industry and the consequent necessity of making the workers 
worth what the law compelled the manufacturers to pay them. 

" 'Up to about 18 months ago,' a large manufacturer told us, 
'we had no regular system at all of teaching learners. The result 
was that they picked the trade up, and became very inefficient 
workers, earning a low wage because they were not worth more. 
When the Trade Boards Act was passed I realized that different 
methods of training would have to be adopted. It became neces- 
sary to make them worth the wage which they would have to be 
paid. Our present system, therefore, is to set one worker to train 
four learners at a time. . . . There has already been a marked 
change in the capacity of some of the workers.' 'We have made 
a new departure,' said another firm, 'in the matter of training. We 
started a school for learners and paid one of our employees to 
teach them.' 'We now pay a woman to teach our learners instead 
of letting them pick up the trade,' is reported by two other firms. 
'Since an employer must now pay progressive rates to learners/ 
stated a foreman, 'he takes care to see that they are carefully 
trained so as to be worth the extra money.' " 






BREAKING IN THE NEW WORKER 339 

pens to know, he learns the best method which systematic 
investigation has succeeded in discovering. In the second 
place, the conception of the gang bosses' duties under 
"scientific management" at its best is very different from 
the conception under prevailing systems of management. 
Instead of being primarily a "driver" as he is under pre- 
vailing systems, under "scientific management" at its best, 
the gang boss is primarily a teacher. His duty is to teach 
his workers to produce more. Instructional ability plays 
a large part in the selection of gang bosses under "scien- 
tific management." Instruction being a. more important 
part of the group supervisor's or gang boss's duties, the 
group supervisor takes a greater interest in it and feels 
a greater responsibility for doing it well. It is less likely 
to be neglected for other duties. 

Although under "scientific management" instruction is 
one of the principal duties of group supervisors they are 
not professional instructors and lack the training in meth- 
ods of giving information and handling learners, and they 
also lack the standards of efficiency which professional in- 
structors possess. As under the workman-instructor plan, 
therefore, there is need for a professional instructor at 
the head of the instructional work, to train the group su- 
pervisors in methods of instruction and to see that high 
instructional standards are maintained. 

3. The third method of training help is by a separate 
training department. Such a department is necessary 
where preliminary instruction and practice are desirable 
before letting the worker begin to do the actual work, that 
is, where instruction on the job is undesirable. It is de- 
sirable also where large numbers of workers are to be 
trained or where the work to be taught is intricate and dif- 
ficult, requiring a specialist to know it and to be competent 
to teach it. 

Separate training departments are very numerous but 



340 THE TURNOVER OF FACTORY LABOR 

they are confined in the main to a few lines of work. They 
are devoted mainly to : 

1. Training skilled workmen (apprenticeship courses). 

2. Training future executives (such as the "cadet" 

courses for breaking in college men). 

3. Training salesmen. 

4. Training orifice workers. 

5. Training certain types of semi-skilled workers who 

are not obtainable in the labor market and who can- 
not satisfactorily be trained from the outset on the 
job. Telephone operators and street railway train- 
men are examples of semi-skilled workers of this 
sort. 5 

5 Numerous excellent descriptions of the training systems on 
street railway companies will be found in the Electric Railway 
Journal. These systems are often very elaborate. The equipment 
includes a complete street car with parts and wiring exposed, unas- 
sembled or partially assembled motors, air apparatus, etc., switch 
sections and sections of track to show their construction, signal 
apparatus, etc. On some systems the training department has as 
much as a mile of practice track for trial runs. The instruction 
for motormen consists of lectures on the construction of the car, 
on methods of operating it, operating troubles, mistakes to be 
avoided, etc., practice operation and runs in actual service. In 
the practice operation the motorman is told to start the car on the 
signal. Without his knowledge some part is put out of order so 
that he is unable to start. He is required to find the trouble for 
himself and in this way learns the numerous possible disorders 
of a car. Before being permitted to operate a car in actual serv- 
ice on his own responsibility he operates under the direction of 
an instructor for several days. After the continuous supervision 
is ended he is re-observed at frequent intervals by instructors to 
correct mistakes and to assure that he is maintaining due caution. 

The Bulletin of the National Association of Corporation Schools 
contains numerous descriptions of apprenticeship courses and of 
courses for office workers. Many of the training departments are 
very elaborate. Mr. George B. Everett of the National Cloak and 
Suit Company, describing the office school of that company, says 



BREAKING IN THE NEW WORKER 341 

It is evident from the above list that the concentration 
of the training of workers in the hands of a few full time 
professional specialists has made very little progress in so 
far as the great mass of semi-skilled workers are con- 
cerned. The advantages of having instruction given by 
specialists who, presumably at least, are better qualified by 
training and natural aptitude than non-specialists to give 
instruction and who have a greater feeling of responsibility, 
interest, and pride in their work than non-specialists, are 
so great that as the importance of the thorough instruc- 
tion of workmen becomes more adequately appreciated, we 
may expect a rapid growth in the instruction of semi- 
skilled operatives by professional instructors who devote 
their entire time to the work. The failure to appreciate 
the importance of the systematic training of workers ac- 

that 500 to 600 students are enrolled in its vocational courses, not 
all of them, however, newly hired workers. (Bulletin National 
Association of Corporation Schools, August, 1915.) Instruction 
is given in arithmetic, geography, typing, English, hygiene, spell- 
ing, penmanship, salesmanship, rapid calculation, filiifg, proof- 
reading, auditing, package opening, mail reading, listing merchan- 
dise, filling orders, mail checking, sheet analysis, mail examining,* 
examining merchandise, assembling orders, stock records, mail assort- 
ing, traffic, ready made order writing, returned goods adjusting, 
made-to-measure order examining, complaints adjusting for head 
clerk, bank order writing, order advising, general mail adjusting, 
correspondence. One hour a day is given to instruction. Class 
Sessions vary from one week, 5 hours, to three months, 60 hours. 
All classes are conducted in business hours, the workers receiving 
full pay. Enrollment in each class is limited to 20. Candidates for 
classes usually take an entrance examination which serves to 
eliminate the unfit and to grade the others according to ability. 
During the course tests are given and a final examination at the 
end. The results are filed and help determine the promotion of 
employees. The texts are prepared by the teachers in consultation 
with the heads of the department concerned. The school is stated 
to be the center of the office system and in a sense a planning 
department. 



342 THE TURNOVER OF FACTORY LABOR 

counts for the utterly inadequate methods prevailing at 
present. In the future the instructional work will con- 
stitute one of the most important branches of manage- 
ment and the instruction given will be much more minute 
and refined than is now the case. 6 

A special case of instruction of much interest is that of 
office and errand boys. It is a growing practice to pro- 
vide an instructor for boys and to have them spend an 
hour or half hour each day or several times a week in the 
classroom on the company's time. In a large Chicago 
plant employing about 200 boys, the boys spend five 20- 
minute periods every two weeks in the classroom. A 
Chicago printing establishment has adopted the policy that 
no boy shall be employed in the plant who is not pre- 
paring to learn a trade. The firm seeks to have all errand 
and messenger work done by boys who are pre-appren- 
tices, that is, undergoing the preparatory training for tak- 
ing the apprenticeship courses. These boys are in the 
classroom 3^ hours daily. Until the great difficulty in 
obtaining boys caused by war conditions, the firm was able 
to adhere to the rule of employing no office and errand 
boys who were not also pre-apprentices. 

The instruction of boys offers special opportunities be- 
cause boys are peculiarly susceptible to influence. An in- 
structor who understands them can perform an invaluable 

8 Systematic instruction under professional instructors is destined 
to radically change our ideas of the time necessary to acquire profi- 
ciency in various occupations. The time necessary to turn out 
skilled workmen is surprisingly short when the workers are trained 
according to well planned methods rather than left "to pick up" 
the trade for themselves. The experience of the Government in 
training workers for war work should be of the highest value 
to manufacturers by showing the tremendous possibilities in sys- 
tematic instruction, its superiority over haphazard methods, the 
best methods of instruction, and the results which are attainable 
by well planned and well given instruction. 



BREAKING IN THE NEW WORKER 343 

service by influencing the boy's attitude toward his work, 
by arousing his ambition, by developing in him a sense 
of responsibility, a feeling of pride in work, and a spirit 
of workmanship. In this way the instructor provides un- 
excelled material for skilled workmen, salesmen, minor 
executives, and for office positions. 

The instructor acts not only as a. teacher but as a voca- 
tional counselor. He ascertains the aptitudes and pref- 
erences of boys and assists them in finding within the plant 
work which interests them. 7 

Boys are proverbially transient, but a good instructor, 
by stimulating their interest in their work and by arousing 
and focusing their ambitions, assists materially in hold- 
ing them. 

The work of the instruction department can be advan- 
tageously combined with the work of the research and 
efficiency department. If the instructors are also efficiency 
experts engaged in the study of working methods and of 
their improvement, their instruction is improved by their 
practical study of processes of work. The work of teach- 
ing processes to beginners, on the other hand, is likely to 
suggest many possible improvements in the processes. 
From the difficulties experienced by new men, instructors 
obtain a better knowledge of the difficulties of the jobs 
than does the mere time and motion study man, and 
knowledge of these difficulties suggests changes in the 
methods of work to eliminate them. Appreciation of the 
difficulties of the operation derived from teaching new 
hands is of great use in time study work because it tends 

7 The question may be raised whether the boys' interests will be 
duly observed by instructors paid by their employer. Certainly 
the possibility of a conflict of interests exists. The interests of 
the boys at stake are so important that this question requires thor- 
ough study. Some firms have entered into a cooperative arrange- 
ment with the public schools by which the schools supply teachers. 



344 THE TURNOVER OF FACTORY LABOR 

to prevent the setting of unduly fast standards. As Pro- 
fessor Hoxie has pointed out, the lack of intimate knowl- 
edge on the part of the time and motion study men of the 
processes of doing the work is one of the weakest links in 
"scientific management," since the setting of standards 
does not depend upon scientific criteria but upon the (judg- 
ment of the observer. 8 

4. Payment of the new worker. 

The system of payment of new workers should be de- 
signed to stimulate the rapid development of efficiency by 
the new worker not only because greater efficiency means 
lower costs but because it lessens the likelihood of the 
worker's becoming dissatisfied or discouraged because of 
his lack of proficiency, and quitting. 

If the job pays piece wages, it is necessary to pay the 
workman day work until he is able to earn a. reasonable 
amount at piece work. Instead of paying him a flat day 
work rate until he is able to earn more than the day work 
rate at piece work, it is desirable to make the amount he 
receives dependent upon the quantity of his production. 
This stimulates him to increase his production and the fact 
that he is earning a little more each week is a great en- 
couragement to him. 

The workman's earnings during the breaking in period 
may be made dependent upon his production by a system 
of day work payments on a descending scale. This may 
be a scale of decreasing absolute amounts or of decreasing 
percentages of his piece rate earnings. The following is an 
example of a scale of decreasing absolute amounts : 

First week: Worker receives full day work only which 
may be assumed to be $18. 

Second week: Worker receives $8 plus regular piece 
rate, for quantity produced. 

8 Labor and Scientific Management, pp. 39-61, especially pp. 
46-47. 



BREAKING IN THE NEW WORKER 345 

Third week : $6 plus regular piece rate for quantity pro- 
duced. 

Fourth week: $3 plus regular piece rate for quantity 
produced. 

Fifth week: Piece rate only. 

An example of a percentage scale is as follows: 

First week: Day work only, $18. 

Second week: Regular piece rate quantity produced 
plus 66.7 percent of piece rate earn- 
ings. 

Third week: Regular piece rate plus 40 percent of 
piece rate earnings. 

Fourth week: Regular piece rate plus 15 percent of 
piece rate earnings. 

Fifth week : Piece rate only. 

If an average good man can earn $24 at piece work 
after four weeks' experience, the scale, if properly cal- 
culated, should enable him to increase his earnings from 
$18, the amount paid the first week, by gradual steps each 
week to $24 for the fifth week. Under this plan the em- 
ployer pays the worker more than he would pay him un- 
der the plan of paying flat day work rate of $3 per day 
until the worker's earnings at piece rates exceeded that 
amount. The employer, however, receives a greater out- 
put because of the stimulus of wages dependent upon the 
output and the worker receives the encouragement of 
earning an increase in his wages every week. 

In order to mitigate the discouragement which workers 
are likely to feel over bad days, it is wise to guarantee them 
a minimum wage, at least during the learning period, in- 
dependent of the amount which they produce. 

A firm which uses a declining percentage scale states 
that it is contemplating changing to an absolute scale such 



346 THE TURNOVER OF FACTORY LABOR 

as is shown in the first example because they desire a scale 
which the worker can visualize more easily. A guaran- 
tee of $10 per week day work is $10 but a bonus 66.7 per- 
cent of an unknown amount of piece rate earnings is neb- 
ulous. 

Although the breaking in period on a job may last only 
a month or several months, it is usually a year at least 
before the workman feels well settled in his job or in the 
shop. During this period he is especially likely to quit. 
Encouragement of the worker, therefore, is especially 
needed during this period. Nothing is a more substantial 
encouragement to him than an advance in wages. Be- 
cause wage increases mean more to the worker during the 
early stages of employment than at any other time, some 
employers have adopted the policy of granting small but 
frequent wage advances during the early stages of em- 
ployment. As the duration of service increases, the fre- 
quency of the wage advances becomes less. This policy is 
followed by some telephone companies. The scale of a 
middle western company for operators provides for an in- 
crease of $1 a week at the end of the first month, 50 cents 
per week at the end of the second month and the same 
amount at the end of the third and fourth months. It 
should be noted that the size of the increase is of secondary 
importance. The important fact to the worker is that he 
has been given a raise. This in itself is a substantial sat- 
isfaction and encouragement to him and aids materially in 
attaching him to his job. 



CHAPTER XVI 

THE HANDLING OF MEN 

The discussion of the methods of handling men will be 
confined primarily to four problems of outstanding im- 
portance, namely: 

1. Wage payments based on merit. 

2. Systematic promotion based upon merit. 

3. Improvement of the methods of handling men by 
minor executives. 

4. An adequate method of handling grievances. 
1. Wage payments based on merit. 

The advantages of basing wages on merit are: 

1. The obvious advantage that a workman who has re- 
ceived an increase is better satisfied because of the higher 
wages he earns. 

2. The fact that every acquisition of dexterity, in- 
genuity, and speed brings the workman a reward in higher 
earnings, creates a definite object for him to strive to at- 
tain. This introduces into his job a spirit of contest and 
struggle. The human mind, has been trained through 
countless generations to delight in the struggle to attain 
desired ends. The introduction of a definite object for the 
workman to strive for, in itself renders the work more 
interesting and attractive. 

3. Earnings based on merit introduce opportunity for 
competition between workers. Love of competition is an- 
other trait which has been impressed upon human nature by 
the character of men's past activities. The pleasure which 
the worker derives from competition with his fellow work- 

347 



348 THE TURNOVER OF FACTORY LABOR 

ers is due to his love of distinction and to the same love 
of contest which causes him to derive pleasure from the 
struggle to attain a given level of wages. 

4. Success which the workman attains in increasing his 
wages is gratifying to his sense of achievement. He is 
pleased to have this tangible proof of progress and accom- 
plishment and feels the pleasure which comes from the 
consciousness of something achieved. 

5. Success in winning wage increases gratifies the 
worker's love of distinction. 

6. The effects of success in winning wage advances fre- 
quently are cumulative for the satisfaction derived from 
one wage advance arouses the desire for the attainment of 
subsequent advances. It is a common observation that am- 
bition is often cumulative — the more it is realized the more 
it grows. This is true of workmen as it is true of other 
men. It is an example of the very familiar fact that the 
pleasure derived from the satisfaction of a certain want 
intensifies the want. 

Another reason why one success in obtaining a wage in- 
crease often stimulates the desire for further increases is 
that the higher standard of living which the worker is able 
to maintain by reason of his higher earnings creates 
new wants. It is the old case of the more we have, the 
more we desire, of the possession of one article creating the 
desire for additional articles to go with it. The greater self- 
respect which a worker feels because of his advancement 
operates in the same manner. He feels that he should now 
have things which he previously had thought beyond him. 

A third reason why one wage increase breeds the de- 
sire for subsequent wage increases is that one success tends 
to overcome the worker's lack of confidence in his ability 
to advance himself. It is human nature to put out of mind 
those things which seem beyond reach. One of the most 
common reasons deterring workers from making efforts 



THE HANDLING OF MEN 349 

to advance themselves has been lack of faith in their ability 
to succeed. 

7. The granting of an increase in wages constitutes a 
recognition by the employer of the workman's capacity as 
a workman. The fact that his ability is taken notice of by 
the employer is naturally gratifying to the worker and fos- 
ters his good will toward the employer. 

8. All of the above elements which foster the worker's 
interest and pleasure in his work are cumulative in their 
effects because an interested workman is more contented 
than an uninterested one. The view he takes of things is 
less critical. Everything about the job and shop appears 
to him in a more favorable light. 

9. Wage payments based on merit enable the manage- 
ment to attract and hold a superior class of workmen. 
How keen workmen in general are to better their condition 
is shown by the large number of resignations due to more 
attractive opportunities elsewhere. It is precisely the most 
ambitious and competent workers, whom the management 
has the greatest interest in retaining, who are most likely 
to be attracted by opportunities to do better elsewhere. 
These also are precisely the workers who best appreciate 
the opportunity to win wage advances by the demonstration 
of merit, and who are likely to seek work where such oppor- 
tunity exists. Such workers, too, by winning wage in- 
creases through the demonstration of their merit soon attain 
earnings above the amounts customarily paid for similar 
work elsewhere so that they are less likely to be drawn away 
by the opportunity to earn more. 

The effectiveness of a system of basing wages upon merit 
depends upon the certainty of the reward following the ex- 
hibition of merit. The more automatic the reward of merit, 
the stronger the system. The piece work, bonus, and pre- 
mium plans of wage payments are all automatic in their 
operation and desirable for this reason. The piece work 



350 THE TURNOVER OF FACTORY LABOR 

system has been ineffective in stimulating greater produc- 
tion in the past because of the prevalence of the piece rate 
cutting policy which was analyzed in Chapter VIII. The 
abuse of the piece work system has caused workmen to re- 
gard all merit systems of payment simply as speeding up 
devices and this prejudice is frequently difficult to over- 
come. 

Special conditions may, however, render a piece work, 
bonus, or premium system less desirable than a time sys- 
tem. If a time system of payment prevails, a method is 
needed which will secure prompt advances of individual 
rates in accordance with individual merit. 

Two things are essential in order to accomplish this: 
(i) reliable records indicating the merits of each worker, 
and (2) a means of assuring that the records are con- 
sulted in order to determine who are entitled to increases. 

Individual records of merit and efficiency are discussed 
in section 3 of this chapter. 

In order to assure that the efficiency records will be con- 
sulted in order to discover workers entitled to increases it 
is customary to set definite times at which these records 
are revised and inspected. Tolman 1 cites the case of an 
employer who said : "I go over my payroll every Saturday 
night to see whose salary I can raise. My men are less 
anxious for advancement than I am to promote them." 

This is a shorter period than is usual or necessary. 
Usually the efficiency records are revised and inspected 
every three months or every six months, or in the case of 
old employees, perhaps every year. In a plant manufactur- 
ing tags, paper boxes and paper novelties, inspection oc- 
curs monthly. The employment manager writes: "Our 
department must go over their payrolls once each month 
and recommend pay advances for deserving employees. 
Their recommendations are prompted by the employees' 
1 Safety, p. 386. 



THE HANDLING OF MEN 35* 

showing as indicated by individual production records. 
This estimate is supplemented by considering other factors 
such as number of suggestions and number of errors made 
by each employee." 

This plan of having the records of the men inspected by 
each department head is the most usual method for assuring 
the recognition of merit. The recommendations of the de- 
partment head are sent to the person authorized to grant 
wage increases for approval. 

The above system of awarding increases does not pre- 
sume that all workers should be entitled to increases as 
their duration of employment increases. It simply pro- 
vides a means of ascertaining which workers are entitled 
to increases and of granting the increase. It ignores the 
workers who are not entitled to increases. 

Is it not a reasonable presumption, however, that the 
longer a worker has been in service the more he is worth, 
and that, therefore, he should be entitled to increases at 
fairly regular intervals as his duration of service increases ? 
And if, as the Worker's duration of service increases, he 
does not become entitled to higher wages, is not this a 
symptom of something wrong either with the worker or 
perhaps with his superiors? 

Some firms believe that workers should be constantly 
developing and that failure to earn increases is a symptom 
of something wrong. In this belief they have established 
the following plan for handling wage increases : 

Definite scales of wage increases are established for each 
class of work, for example so much increase after one 
month of employment, another increase at the end of 
three months, another at the end of six months, another 
at the end of one year and perhaps annual increases there- 
after. Every worker is expected to earn these increases. 
At the end of each period in the worker's employment an 
inquiry is sent by the payroll department to the head of 



352 THE TURNOVER OF FACTORY LABOR 

the department in which the worker is employed, asking 
whether the department head recommends the advance 
which, according to the established scale, the worker should 
receive at that time. If the department head does not 
recommend the advance he must justify his position by a 
definite reason. Unless the department head gives a definite 
reason for denying the increase, it is granted. The cases of 
workers who fail to earn the regular increase are investi- 
gated by the supervisor of labor, employment manager, or 
service department. If the worker is unadapted to or dis- 
likes his work a transfer may be arranged. If he has a 
grievance and consequently is not endeavoring to improve 
his work, an attempt is made to effect an adjustment. If 
the worker is not interested in his work, the reason for this 
is sought and, if possible, remedied. If the worker is simply 
lazy or if he does not respond to efforts to interest him in 
his work, he may be dropped, for it is often preferable to 
undergo the expense of breaking in a new man rather than 
to have a worker on the payroll who has ceased to develop. 

A western farm implement factory has a plan whereby 
the hourly rate of each worker depends directly upon his 
speed. Each job has a value set upon it. This value di- 
vided by the time taken to complete the job, gives the value 
of the man per hour. The hourly rate of each man is 
based on his value as indicated by the average value of his 
hourly production over long periods. If a worker regu- 
larly completes a job rated at $3.00 in nine hours, his rate 
will be 33.3 cents per hour. Should he reduce this time to 
eight hours, his rate would be raised to 35.5 as soon as he 
has maintained the faster speed long enough to indicate that 
he has permanently attained it. Should his performance 
time increase over an extended period of time his hourly 
rate would be decreased. 

This method has the advantage of eliminating the worry 
which the worker feels under the bonus system as to 



THE HANDLING OF MEN 353 

whether he will finish the work in the time required to earn 
his bonus. Special conditions such as poor material, delays 
in crane or truck service, trouble with machinery or tools, or 
the worker's own physical condition may render it diffi- 
cult at times for him to complete the job in the time re- 
quired to earn a bonus. As the worker is anxious to ob- 
tain the bonus this is a source of worry to him and he 
works under a strain. This strain is eliminated under the 
plan of this Iowa factory, because the fact that the worker 
on some days is delayed in doing the job does not mean 
that he loses, since his hourly rate does not fluctuate with 
his performance from day to day but is based on his aver- 
age performance over extended periods. 

An interesting refinement of the bonus system is fur- 
nished by an automobile factory which, in addition to re- 
warding the workers by a larger bonus as they beat the 
standard time, also rewards those workers who earn large 
bonuses consistently by an increase in the hourly rate upon 
which the bonuses are calculated. A standard time is set 
for each job and the workers are paid a bonus for bettering 
this time. For every 5 percent bonus which a worker con- 
sistently makes over 35 percent, he is entitled to a two cent 
increase in his day rate. For example, if his day rate had 
been 40 cents per hour and he was making a bonus of 40 
percent, his day rate would become 42 cents and his bonus 
of 40 percent would be figured on 42 cents instead of on 
40 cents. The hourly rate is based on the worker's average 
performance so that if the worker falls below the 35 per 
cent bonus occasionally, his hourly rate is not reduced. 

A unique and exceptionally interesting plan of payment 
in accordance with merit is the "credit system" of wage 
payments of the Chicago Motor Bus Company. 2 The wages 

"This plan, which was originated by Mr. Harold B. Weaver, 
vice president of the company, is described in detail in the Electric 



354 THE TURNOVER OF FACTORY LABOR 

of each employee depend upon the number of credits he 
had at the last monthly rating. Employees are divided 
according to their credit rating into seven classes, as fol- 
lows: 

G Up to and including 150 credits. 

F From 151 to and including 300 credits. 

E From 301 to and including 450 credits. 

D From 451 to and including 600 credits. 

C From 601 to and including 900 credits. 

B From 901 to and including 1,200 credits. 

A From 1,201 to and including 1,500 credits. 

The hourly rate of men in class F is one cent more than 
of the men in class G, and so on. 

Three kinds of credits are awarded: 

1. Regular credit for duration of service. Twenty-five 
credits are given each month of employment. 

2. Extra credits for three consecutive months or more 
of perfect service. From the 4th to the 9th month, in- 
clusive, of uninterrupted perfect service, 5 extra credits per 
month are given, from the 10th to 21st month inclusive, 10 
credits per month, and for 22 or more consecutive months 
of perfect service 15 credits per month are awarded. 

3. Bonus credits given for extraordinary service or ex- 
ceptional efficiency. 

Employees are penalized for violations of rules by de- 
ductions from their credits. No more than 50 credits may 
be deducted for a single offense. Employees are notified 
of deductions from their credits and have the right of ap- 
peal to a board appointed by the president. 

Employees with ratings in excess of A participate in 
profits at rates determined by their duration of service and 
the dividend rate of the firm. 

Railway Journal, v. LI, pp. 89-90. This summary of the system is 
based on the description in the Electric Railway Journal. 



THE HANDLING OF MEN 355 

Another unique and interesting system of payment is 
used by The H. H. Franklin Manufacturing Company. 3 
The aim of the plan is to set rates in accordance with an 
evaluation of each worker made in accordance with a 
selected formula. The elements taken into account are : 

1. Rate of production. 

2. Spoiled work or damage to equipment. 

3. Years of continuous service. 

4. Lateness and absences. 

5. Number of major processes worker can do. 

6. Monetary responsibility placed in hands of workers. 

7. Cooperation and conduct. 

For all of these elements standards of performance are 
set which yield a standard rate. Each worker is evaluated 
in terms of his performance as compared with the standard 
performance by a formula which gives various weights to 
deviations from the standard performance in the various 
elements enumerated. 

2. Systematic promotion based on merit. 

A number of the advantages of filling vacancies from 
within the force were discussed in Chapter XIV, section 4. 
Systematic promotion according to merit is also desirable 
for all of the reasons which render the payment of wages 
in accordance with merit desirable. Workmen are attracted 
by the opportunity to win promotion to better jobs by merit 
precisely as they are attracted by the opportunity to win 
advances in wages by merit. 

Although the numerous resignations of workers to take 
advantage of better conditions elsewhere indicate that 
there is a widespread desire among workmen to better their 
condition, in most instances the workers are induced to 
change by the immediate benefits of better wages or easier 

8 For detailed description see an article by Mr. George D. Bab- 
cock on "Fixing Individual Wage Rates on Facts," Iron Age, 
v. XCVII, pp. I375-I379- 



356 THE TURNOVER OF FACTORY LABOR 

and more agreeable work, rather than by the opportunities 
which the new position offers for advancement in the long 
run. One of the most important problems of present day 
management is to interest workers in the future oppor- 
tunities of positions as well as their immediate attractions. 
Workers cannot be criticised, however, for attaching little 
importance to the future opportunities of jobs because un- 
der the haphazard system of promotion which prevails in 
most shops, no definite future opportunities are offered to 
men of merit. When workers can see a definite oppor- 
tunity to advance by demonstrating their ability they may 
be expected to take greater interest in the possibilities of 
their jobs and not to change readily to other jobs the possi- 
bilities of which they do not know. Systematic promotion 
based on merit is needed to induce workmen to take a long 
run point of view. 

There are three principal prerequisites to the successful 
operation of a policy of systematic promotion in accordance 
with merit : 

The first is that the rates of pay for the various jobs be 
graded according to the skill and responsibility involved, 
with proper differentials for peculiarly severe or unpleas- 
ant jobs. In most factories rates have been set without ade- 
quate investigation. After being set some have been cut 
and others have not. The result is that many skilled and re- 
sponsible jobs pay less than jobs requiring slight skill. 
It is, of course, impossible to promote men when they earn 
less at the more exacting than at the less skilled work. 

The second prerequisite is that in so far as possible men 
shall be advanced along definite lines of promotion. This 
is desirable because: 

i. If the steps of advancement are properly worked 
out, the men will be advanced to jobs for which by previous 
experience they are best fitted, and will pass through the 



THE HANDLING OF MEN 357 

series of jobs which will best equip them for the most exact- 
ing and most remunerative. 

2. Systematic organization of lines of promotion means 
that each job will have an outlet. This should be a cardinal 
principle in every plant — that no job should be without an 
outlet. 

3. Regular lines of advancement enable the men to know 
definitely the positions they are next in line for and hence 
the precise nature of the opportunities before them. Men 
will strive harder to attain a goal which they can definitely 
see than an uncertain one which they cannot visualize. 

The detail with which sequences of advancement can be 
worked out varies. Sometimes definite sequences can be 
worked out in which one position leads to another particu- 
lar position, the second position to a particular third posi- 
tion, and so on. In other cases there are numerous jobs of 
substantially the same degree of skill and requiring sub- 
stantially the same preparation. In these cases no par- 
ticular job leads to any other particular one but the jobs 
are divided into groups, workers being promoted from one 
in the least skilled group to any one in the next higher 
group, and so on. 

Public utility corporations have developed systematic 
lines of promotion farther and more completely perhaps 
than have most industries. In the footnote is given a 
description of the sequence of advancement worked out by 
a large middle western electric light and power company 
showing the manner in which switch board operators are 
developed by passing through a series of subordinate posi- 
tions. The description is published privately by the com- 
pany. 4 

4 "The lowest position in the electrical division depends upon size 
and general layout of the individual stations, being usually that of 
meter statement takers, helpers on the exciter floor or inexperienced 
electrical mechanics. But a man's first actual operating begins 



358 THE TURNOVER OF FACTORY LABOR 

The Ford Motor Company presents a case of classifica- 
tion of jobs into groups. Before standardization the com- 
pany paid sixty-nine different rates by no means consistent 

when he becomes an exciter operator and is in charge of exciters, 
batteries, etc. In this position it is within his power to disturb 
the service rendered from the station, and it is here, therefore, 
that his real responsibility begins. He has charge of switching in 
and out of exciter generators, charging and discharging stand-by- 
batteries, switching for main generators, fields, etc., and first works 
from midnight to 8 :oo a.m. 

"After an exciter operator has progressed from the night shift 
to the dayshift, passing through the afternoon watch, and is 
found qualified, he is promoted to the position of assistant day 
operator. This move brings him in contact with the senior operator, 
which is particularly advantageous to him. He thus secures his 
first gallery instruction and training from the senior operator, who, 
in turn, has passed through the different positions below him and 
is familiar with the conditions of each. Progressing from the 
position of day assistant operator, the man next takes the job of 
evening assistant, working from 4:00 p.m. to 12 p.m., and when 
next promoted takes the night assistant's watch. 

"He, by this time, has received several months', possibly a 
year's, training as assistant operator and is in condition to grasp 
the meaning and significance of meter indications quickly and accu- 
rately, but has been permitted to do responsible operating only 
under the direct supervision of the regular operator. He will 
receive instruction and practice in all operating work during his 
occupation of the assistant's position, but the practice operating 
is permitted only with the sanction of the Watch Electrician in 
charge of each watch and with the direct coaching and checking of 
the regular operator. 

"The next promotion will place the senior assistant in the posi- 
tion of junior operator, in the same watch as he has been working 
as assistant. This is done for the purpose of giving the man his 
last instruction as assistant on the work and load conditions that 
he will handle in the more responsible position of junior operator. 
The man works successively the night and evening watches and then 
takes the day watch. Satisfactory results have been obtained from 
this schedule. 

"The position next higher than day operator is that of relief 



THE HANDLING OF MEN 359 

switchboard operator, whose duty it is to furnish regular relief 
days once a week in the gallery as a sort of a review before going 
farther in the organization. He works a regular schedule covering 
three watches, relieving each man every eighth day, taking the 
eighth and last day of each cycle of relief himself. This schedule 
provides for any one man a relief day, one day later each week; 
that is, in one week he will be off duty on Sunday and in the next 
week off duty on Monday, and so on. The relief operator auto- 
matically tends to standardize the operating by carrying from one 
set of men to the others the good points and improvements in 
operating that develop among the men. 

"When a man has progressed in the organization to the point 
where he has successfully discharged the duties of all switchboard 
positions and has finally reviewed the work for several months 
in the position of relief operator, he is considered capable of being 
in charge of all operating work and men on any one shift; this 
includes high tension line testing, inspection and repair work, and 
instructing of all subordinates. The man then becomes, when the 
chance occurs, the relief Watch Electrician, whose duty it is, as 
the title implies, to furnish relief periods for the watch electricians 
on three days each week, taking the fourth himself and lapping 
with one of the electricians or working wherever needed on the 
remaining days of the week. There are three regular Watch 
Electricians, one for each watch, who have direct charge of all 
electrical work in the station, repairs, etc. The remaining electrical 
positions are those of electrical inspector, foreman of electrical 
mechanics, and electrical mechanics. 

"The inspector who works nights makes regular inspections of 
generators and their auxiliaries after each run, giving particular 
attention to armatures, generator oil switches, rheostats, insulation 
testing, etc., giving such time as he can spare from regular inspec- 
tions to the inspection of pressure and control wire terminal boards, 
line and bus tie oil switches, batteries, auxiliary motors, etc. This 
inspector may be a graduate switchboard operator or a man who 
may have progressed to the position of watch electrician but who has 
wished to change from regular operating work. To be a competent 
inspector he must have a knowledge of mechanics and be able 
to direct high class repair work as well as to tell accurately what 
equipment is serviceable and not liable to interruptions. 

"Electrical patrolmen are required in some of the larger stations 
for patroling the bus chambers, switch, and transformer houses, 



3<5o THE TURNOVER OF FACTORY LABOR 

with the skill required. 5 In 1912 standardization was intro- 
duced by dividing the force into six general groups. The 
groups are: 6 

A. Mechanics, subforemen. 

B. Skilled operators. 

C. Operators — press hands, drill press operators. 

D. Helpers. 

E. Laborers — non-productive. 
Special, girls, messengers. 

Each class of employees except E and Special has three 
rates which are based on output — one for beginners, one for 
fair production, and a third for good output. Beginners are 
started at the lowest rate and are expected to earn an ad- 
vance in six weeks. Employees unable to progress are re- 
ported to the employment department and investigated. 

The Ford Company represents standardization in a 
plant in which the men are largely semi-skilled. The Bul- 
lard Machine Tool Company of Bridgeport, Connecticut, is 
an example of classification in a plant in which the help is 
somewhat more skilled. Six classes were established, four 
of which consist of mechanics, one of apprentices, one un- 

and to assist the Watch Electricians in making line tests or to help 
wherever special or emergency work is being done. 

"The foreman of electrical mechanics has charge of all repairing 
of electrical equipment on the station property, such as motor 
drive, crane operating, maintenance of lighting systems and electric 
locomotors. He also makes periodic tests to determine the con- 
dition of fire alarm systems, coal conveyor and crusher, automatic 
stopping devices, and energy consumed by certain motor equip- 
ments." 

5 John R. Lee: "The So-Galled Profit Sharing System in the Ford 
Plant," Annals of the American Academy of Political and Social 
Science, v. LXV, May 1916, on "Personnel and Employment Prob- 
lems," p. 300. 

"Abell: "Labor Classified on a Skill Wages Basis," Iron Age, v. 
XCVI, pp. 48-51. See also Emmet, "Profit Sharing in the United 
States," U. S. Bureau of Labor Statistics, Bulletin No. 208, p. 95. 



THE HANDLING OF MEN 361 

skilled. These classes are described in somewhat indefinite 
terms by the company as follows : 7 

"In class AA, from which will be recruited our future 
shop executives and foremen, are grouped the sub-foremen 
and leaders in charge of the working gangs of mechanics. 
The maximum wage rate is limited only by ability and 
occupation, while a high minimum of 55c per hour has been 
set. 

"Class A, composed of the mechanics of the highest skill, 
forms the basis of promotion to Class AA and like it has an 
unlimited maximum hourly rate dependent only on ability, 
and a minimum rate of 50c an hour. 

"Mechanics of good average ability are rated in Class B 
for which a wage of 45c an hour has been set. Advance- 
ment in rate will be the logical reward of true merit and 
diligent service. 

"In Class C have been grouped those mechanics of less 
skill but whose work shows merit and possibility of devel- 
opment which will warrant advancement, to the highest 
class. The hourly rate is 40c. 

"All apprentices, both special and regular, are put in 
Class D, and when their term expires, promotion will be 
promptly made to the class for which they have qualified. 
The apprenticeship rates are advanced approximately 10 
percent. 

"The non-productive skilled labor and the unskilled labor, 
such as truckers, cleaners, sweepers, etc., have been grouped 
in Class E which has a minimum rate of 25c an hour and a 
maximum rate which is limited only by occupation and 
skill and proficiency therein. In recruiting this force, pref- 
erence will be shown to those who can speak and write the 
English language and who show possibilities of advance- 
ment and development. 

"To the unskilled there is offered the opportunity to 

7 Iron Age, v. XCVII, p. 1274. 



362 THE TURNOVER OF FACTORY LABOR 

acquire skill with regular or apprenticeship courses. Our 
aim and hope is to have a mechanical organization com- 
posed mainly of AA and A men, with B, C, and D men in 
sufficient numbers only to provide for natural growth and 
expansion and to make up the small losses that are bound 
to occur in any large organization." 

A manufacturer of bags, boxes and paper novelties uses 
a group gradation system, with three classifications, A 
positions, B positions and C positions. Several years 
ago the scale was : C positions, less than $13.50 per week, 
B positions, from $13.50 to $16.50 per week, A positions, 
over $16.50 per week. The employment manager states the 
plan has worked very satisfactorily. 

A middle western clothing manufacturer has divided all 
operations into 5 grades according to the skill required. 
There are 3 divisions of work within each of which pro- 
motion occurs: hand sewing, machine sewing and press- 
ing. The workers are advanced within each of the 3 di- 
visions from the lowest grade of operations through the 
intermediate grades to the fifth and highest grade. 

The third essential to the success of a system of promo- 
tion based on merit is the certainty that promotions will 
actually be made in accordance with merit and not in ac- 
cordance with the foreman's more or less indefinite im- 
pressions as to who is entitled to promotion. This is made 
possible by individual records of efficiency and character 
which are discussed in the next section. 

3. Records of efficiency and character. 

Records of individual efficiency and character are val- 
uable not only in preventing meritorious workers from 
being overlooked when wage increases are granted and 
promotions are made, but also as an indication of workers 
who need help and instruction and as a check upon the 
efficiency of the employment department since they indicate 
how closely workers' traits correspond with those which the 



THE HANDLING OF MEN 363 

employment department attributed to them when it hired 
them. When workers contemplate resigning, the records 
indicate how much effort is worth while to hold them. 
Finally the records tend to prevent unjust discharge by 
foremen since the management is not inclined to permit 
workers with good records to be discharged without care- 
ful investigation. 

The following descriptions of rating systems and effi- 
ciency records illustrate typical systems for rating effi- 
ciency. 

The Government Armory at Springfield, Massachusetts, 
has a system which applies to all men in the plant up to and 
including the assistant foremen. The ratings are made by 
a board consisting of the officer in charge, the assistant 
officer, general foreman, assistant foreman in charge of 
the workman's department, and the chief inspector. They 
are adjusted every six months and form the basis for pro- 
motion and for lay-offs when reductions in force are made. 
The qualities upon which men are rated and the weights at- 
tached to each are : 

Attendance, 1. 
Application, 1. 
Habits, 2. 
Adaptability, 2. 
Ability, 4. 

Piece work earnings or other output records test adapta- 
bility and ability. 8 Noteworthy is the method of rating 
"application" and "habits." Men are given full credit for 
these qualities unless reason for contrary action exists. 
The fact that there is little evidence on which to rate 
workers' habits renders it desirable to rate all men alike 
except where definite reasons for doing otherwise exist. 
There is no lack of evidence, however, of the application 

8 Iron Age, v. XCI, p. 812. 



364 THE TURNOVER OF FACTORY LABOR 

of the workers, and to give all workers a perfect rating on 
this point unless evidence is known detracting from the 
perfect rating would seem to be an injustice to those of 
exceptional application who far surpass others of merely 
satisfactory application. 

An eastern printing and binding establishment secures 
a report four times a year for five years on the following 
points : 

Discipline 
Efficiency 
Hours employed 
Hours out on own time 
Bonus hours 
Total earnings 

Space is left for notation of tardiness, information in 
regard to personal affairs, and general information affect- 
ing work. Efficiency is measured by the proportion of the 
bonus hours to the total hours worked. 

This information is entered on the back of a sheet which 
contains the employment record of the worker, both pre- 
vious to and during employment by the firm. It contains 
the usual information such as age, nationality, number of 
dependents, education, health, general habits, previous em- 
ployment including duration, earnings, reasons for leaving, 
work done in employ of this company, date hired, rate, 
dates of transfers, leaving, and reasons for transfer or 
leaving. The part of the form relating to efficiency is 
shown in Form D on page 365. 

Form E shows the record kept by a button manufacturer. 
The information is secured quarterly for several years. 
After a worker has been employed several years the firm 
does not consider it necessary to continue the record as 
important changes in the ratings of the worker after this 
are not considered probable. 



THE HANDLING OF MEN 



365 



(By 13 week periods) 


1st year 


2nd year 


3rd year 


4th year 


5th year 


DATE 
































% DISCIPLINE 
































EFFICIENCY 
































REPORT GIVEN BY 
































HOURS EMPLOYED 
































HOURS OUT ON OWN 
TIME 
































BONUS HOURS 
































TOTAL EARNINGS 
































TOTAL EARNINGS 

































DATE 


record ^ " lc ^ u de tardiness, personal affairs and all 
general information affecting work 





















































(Form D) 

A desirable feature of the plan used by this firm is that 
the information is collected by a representative of the em- 
ployment department by questioning the foreman. More 
careful answers are likely to be obtained from the foreman 
by this method than when the foreman is left to fill out the 
blank himself. 

The employment manager of a manufacturer of office 
furniture and filing apparatus has devised a plan which 
was about to be put into effect at the time of my interview 
whereby employees will be graded at the end of the first 
month and third months and of the first year according 



366 THE TURNOVER OF FACTORY LABOR 



























































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THE HANDLING OF MEN 



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368 THE TURNOVER OF FACTORY LABOR 



to dependability, intelligence, industriousness, neatness, 
cheerfulness, and activity. The employment manager rates 
the men on these qualities at the time of hiring so that the 
subsequent ratings check the accuracy of the employment 
man's judgment. It is planned to have the foremen re- 
port their rating on special blanks sent to them for the 
purpose and to have the results entered on the permanent 
record in the employment office. 

This firm furnishes another example of the rather in- 
frequent but advantageous practice of having the entire 
record of the employee except, that needed by the payroll 
department upon one blank. The reverse of the sheet used 
for the employment record is the application for employ- 
ment on which are entered the facts desired concerning the 
worker and his industrial history. The form also provides 
for an estimate of the worker on leaving so it can be trans- 
ferred to the dead file for reference in case he applies for 
reemployment. 

Form F is a facsimile of the form. 

An eastern manufacturing company uses the following 
marking system which is restricted to apprentices. Every 
three months the foreman with the aid of the assistant 
foreman grades the apprentices on each of the following 
qualities : 

Mechanical ability 

Application 

Progress 

Ambition 

Initiative 

Steadiness 

Quality 

Attitude (or conduct) 

A mark of A indicates ioo points, perfect ; B, very good 
(90 to 99 points) ; C, good (80 to 89 points) ; D, fair (70 to 
79 points), 



THE HANDLING OF MEN 



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370 THE TURNOVER OF FACTORY LABOR 

An elaborate effort to obtain information concerning the 
character of workmen is made by a western shoe manufac- 
turer. Form G shows the nature of the report. This re- 
port is sent to the employment supervisor by the foreman 
every six months. 

REPORT ON EMPLOYEE 

OFFICE FACTORY DATE 

Name No 

Department Position 



Please check each of the following that the employee may pos- 
sess, so we can keep a record of the same for future reference. 

Employment Supervisor. 
Is this Employee 

Careful Careless 

Punctual Tardy 

Accurate Inaccurate 

Industrious Lazy 

Has he a good memory? Forgetful 

Orderly Disorderly 

Patient Impatient 

An abstainer Drinker 

Dependable Undependable 

Quick Slow 

Teachable Healthy 

Adaptable Good disposition 

TT . ! ., f Reliability 

Has he character? j Honesty. 

How is his discipline? 

Do you ever have to rebuke him? 

What for? 

Has he good or bad influence 

over the other employees? 

Does he show special interest in the work? 

Sign and return 

Signature 

(Form G) 



THE HANDLING OF MEN 3?l 

A remarkable attempt at character analysis has been 
made by a firm which proposes to appraise men's char- 
acter on a scale of ioo. The firm has drawn up a list of 
20 characteristics which it considers should form the basis 
of the appraisal. To each of these it has assigned the num- 
ber of points out of a possible ioo which it believes repre- 
sent the relative importance of the characteristic. For each 
characteristic the worker is given the number of points out 
of the total number of points assigned to represent the im- 
portance of the characteristic which he is considered to 
deserve. The sum of the points assigned to the man is the 
estimate of his character on the scale of ioo ! An esti- 
mate is made of the amount of each characteristic required 
by trie particular job in question and a comparison with the 
rating given the worker on each determines whether he 
possesses the requisite amount. 9 

8 As this method is in an experimental stage the firm makes no 
claims concerning its value. The objections to it are rather too 
obvious to require comment. There is first of all the practical 
difficulty — the lack of means to measure human characteristics 
and the consequent subjective nature of all conclusions. The most 
fundamental objection appears to be that it is impossible to weigh 
the various human characteristics by their total importance. A cer- 
tain amount of many qualities may be absolutely essential to fit a 
man for the work. If the various characteristics are assigned a 
weight in accordance with their total importance, many would be 
reckoned of infinite importance. Finally, it is impossible satisfac- 
torily to rate men on a scale in which ioo represents perfection 
when no one knows what perfection is. 

A rating system sound in principle, instead of endeavoring to 
measure men on a scale in which ioo represented some more or 
less indefinite ideal, would measure men by their deviation from 
the normal. A weight would be assigned to the various charac- 
teristics not on the basis of their total importance but on the basis 
of their relative scarcity, the less scarce characteristics receiving 
low weights even though in certain quantities they are absolutely 
indispensable. The workers would be assigned points above or 



372 THE TURNOVER OF FACTORY LABOR 

One of the best means of discovering workers meriting 
promotion or advancement in wages is through the instruc- 
tion department. It is the purpose of instruction depart- 
ments to train old employees for promotion as well as to 
break in new workers. Classes are held after business 
hours for those desiring to fit themselves for better posi- 
tions. As attendance is voluntary these classes naturally 
consist of the most ambitious workers who usually are also 
the most intelligent and the most competent. 

4. Improving the handling of men by foremen and 
gang bosses. 

The foremen and gang bosses are the most important 
means by which workmen come in contact with the man- 
agement — they are the management to the workmen in most 
matters. Every factory executive has heard the expression 
used by workmen : "So and so is a good man to work for." 
He knows what it means from the standpoint of satisfied 
workmen and absence of friction between the men and the 
boss when a foreman acquires such a reputation. In view 
of the well recognized importance of the methods used by 
minor executives in handling men in their effect upon the 
relations between men and management, it is surprising that 

below the weight given the characteristic in accordance with 
whether they were believed to possess more or less than what is 
conceived to be about the normal amount possessed by men in 
general. Under this system about half the workers would receive 
ratings of over 100 and about half of less than 100. 

In the application of such a system it would undoubtedly be 
better, instead of attempting to rate all men by one norm, to set 
up different norms for different classes of men, such as one norm 
for common laborers, another for semi-skilled workers, another 
for skilled workers. 

A fundamental objection to all numerical rating of qualities 
which cannot be exactly measured is that the figures create an 
impression of false accuracy and lead even to the self-delusion of 
the person who makes the estimate concerning the accuracy of 
his estimates. 



THE HANDLING OF MEN 373 

so little systematic effort has been made to improve the 
methods of minor executives in handling men. 

Statistical data on the influence of the foreman upon the 
turnover are difficult to obtain because it is difficult to find 
two departments in which the work, wages, and working 
conditions are the same. A piano manufacturer has two 
shops each making the same product, paying the identical 
wage scale and located in the same section of the city. The 
hiring for each is done at a central office. In June 1916 
one shop with a force of 220 lost 38, the other with a force 
of 145 lost 36, turnover rates for the month of 17.3 percent 
and 24.8 percent respectively. These figures being only 
for a single month would be of no significance, except that 
the employment manager says they are typical of a differ- 
ence which prevails constantly. This difference he at- 
tributes to the foremen. The foreman of the second shop 
is a Swede who, in the employment manager's words, "thinks 
his men are dirt." 

In a plant making an automobile accessory there are 
two groups of drill press operatives each doing precisely 
the same work and paid precisely the same piece rates. 
They are located opposite each other on either side of a 
large room. There are about 18 operatives in each group, 
mainly young men 18 to 21 years of age. One group is 
under a middle-aged man, a good foreman but possessing 
no particular qualities to win the esteem of his men. The 
other group is under a young man of about 25, of genial 
magnetic personality, an expert ball pitcher and all around 
athlete. He is idolized by the young men in his gang. 
The losses in the group of the older foreman, according to 
the employment manager, average about 9 or 10 men per 
year, in the gang of the younger foreman 3 or 4 per year. 
The employment manager attributes the difference entirely 
to the difference in the foremen. 

It is futile to expect substantial results from improve- 



374 THE TURNOVER OF FACTORY LABOR 

merits in the methods of foremen and gang bosses in 
handling men until generous consideration has been 
granted the workers' interests in the matters of wages, 
hours, and physical conditions of work. Considerate treat- 
ment of workers will evoke no response from them as long 
as behind this outward kindliness and consideration the 
management seeks to drive hard bargains with respect to 
wages and hours. The more the problems of management 
are studied, the more apparent it becomes that their solu- 
tion rests not upon the application of superficial remedies 
affecting only the less important interests of the workers 
but upon the introduction of drastic reforms in matters of 
vital consequence to the workers. 

It is useless also to attempt to improve the methods of 
foremen and gang bosses in handling men as long as the 
"drive" policy of management prevails in the shop. The 
"drive" system requires that the workers be cowed and 
made to fear the management. Considerate treatment of 
the men and good feeling between the men and the manage- 
ment are incompatible with the very essentials of the 
"drive" system. 

The improvement of the methods of handling men by 
minor executives assumes, therefore, two things: (i) 
that a high wage and short hour policy is profitable; (2) 
that the "drive" system is unprofitable. If the employer 
determines his labor policy upon financial considerations 
alone, and if he decides that a low wage, long hour and 
"drive" policy is the more profitable, he is not interested 
in reforming the methods of his minor executives. 

The most important single step in the improvement of 
the methods of handling men by foremen and gang bosses 
is not the instruction of the foremen and gang bosses in 
specific methods of handling men, but the thorough im- 
pressing of foremen and gang bosses with the fact that 
fairness and liberality with the men is the definite policy 



THE HANDLING OF MEN 375 

of the firm and that it is the duty of the minor executives 
to carry out this policy. Foremen and gang bosses stand 
ready as a rule to give what is wanted of them. The reason 
why coercive "drive" methods have prevailed in the past 
has been that the central management has been indifferent 
to the methods pursued by foremen in handling men but 
has insisted rigidly upon a constantly increasing output and 
constantly decreasing costs. A slight decrease in output 
or increase in costs caused the foreman to hear immediately 
and forcibly from the central management. Under these 
conditions "drive" methods were practically inevitable, 
for although a liberal policy may be more profitable in the 
long run, it does not produce the immediate results required 
of the foremen. When foremen and gang bosses under- 
stand that fairness and liberality in dealing with their men 
is just as emphatically demanded by the central manage- 
ment as are large output and low costs and that failure to 
treat men with consideration and liberality will be just as 
severely dealt with as failure to maintain output and hold 
down costs, foremen and gang bosses will be as assiduous 
in improving their methods of handling men as they now 
are in increasing output and cutting costs. The secret of 
success in putting into effect a liberal labor policy is in em- 
phatically impressing upon the minor executives that liber- 
ality is wanted. When subordinate executives understand 
this, their methods of handling men will in a large measure 
take care of themselves. 

To assure that the policy established by the management 
is being carried out and to bring violations of the policy to 
the attention of the management, it is desirable to provide 
checks upon the methods of foremen in handling men. 
Among these checks are the following: 

1. The reason for every resignation should be ascertained 
in so far as possible by the employment office. In order 
to give the employment manager an opportunity to inter- 



376 THE TURNOVER OF FACTORY LABOR 

view the workers who leave, an order from the employment 
office should be required to authorize the paymaster to pay 
off each worker. 

2. The authority of foremen to discharge workers should 
be limited. Many a discharge is due not to undesirable 
characteristics of the worker but to the fact that the fore- 
man does not understand how to get along with him. The 
peculiar personality of, the worker or of the foreman or 
some past misunderstanding between them may create an 
antipathy between them which renders it difficult for them 
to get on together. Under another foreman the workman 
might get along very well. Often the cause for the dis- 
charge is something which angers the foreman. The work- 
man by his mistakes may have put the foreman to great 
inconvenience and trouble. An angry man, however, is 
an unfit person to decide a question of discharge. He is 
not a neutral party and in a large percentage of cases his 
decision will be unjust. It is not unusual for a foreman 
to report to the labor bureau a man discharged as "no 
good," and, a short time after, request that the man be 
rehired. When told that he reported the worker to have 
been unsatisfactory he often answers that he did so in 
anger. Finally, the discharge of a worker is of sufficient 
importance to warrant careful and deliberate consideration 
by some one not directly involved in the matter and of 
greater responsibility and better judgment than the average 
foreman. One would not think of scrapping machinery 
as thoughtlessly and heedlessly as many men are discharged. 

In some plants the authority of the foreman is limited 
to the power to dismiss from his department. In such 
cases authority to discharge from the company's service 
usually is in the employment man or supervisor of labor. 
In a company manufacturing rubber goods authority to dis- 
charge depends upon the duration of the worker's service. 
Foremen may discharge workers employed less than one 



THE HANDLING OF MEN 377 

year. The discharge of workers employed from one to three 
years must be approved by the general foreman of the de- 
partments, the discharge of those employed from three to 
five years by the member of the Factory Council in charge 
of the department in which the man works, and the dis- 
charge of workers employed five years or more must be 
approved by the factory manager or in his absence by the 
acting factory manager. 

Restricting the foreman's authority to the right to dis- 
miss from his department gives the employment department 
or supervisor of labor the opportunity to prevent men un- 
justly or unwisely dismissed from leaving the employ of 
the firm. It fails, however, adequately to prevent unjust 
dismissals from the department and still less to check the 
use of tactless, careless methods of handling men by the 
foremen, which develop friction between them and the fore- 
men. The friction in turn leads to occurrences such as 
an angry workman's telling the foreman to go to hell, in 
which dismissal is necessary but which would have been 
avoided had the worker been properly handled. In order 
to check tactless and careless handling of men and unjust 
dismissals it is desirable to deprive the foreman of authority 
even to dismiss from his department without the approval 
of the division superintendent, supervisor of labor or gen- 
eral manager. It is a pernicious idea, a relic of the "drive" 
system under which the foreman needed to command the 
fear of the workmen, that the absolute right to dismiss 
from the department is necessary to enable the foreman 
to "maintain discipline." When a foreman knows that by 
dismissal he can get rid of any workman with whom he 
experiences difficulty and that no questions will be asked, he 
is likely to take no special pains to get along with men who 
must be handled carefully. If he understands that dis- 
missals are looked upon with disfavor by the management 
and that he must obtain approval from a superior for each 



378 THE TURNOVER OF FACTORY LABOR 

dismissal he will be more likely to go out of his way to 
get along with men. The familiar principle applies here 
that irresponsibility breeds arbitrary action and that respon- 
sibility fosters fair action. An eastern printing and bindery 
establishment has taken from the group supervisors the 
right to dismiss workers from their groups. 

In checking the justice of the foreman's dismissals the 
labor supervisor or other official whose approval is neces- 
sary, has the aid of the individual efficiency record of the 
worker, such as those described in the preceding section. 
In this is entered the foreman's estimate of the worker's 
character and efficiency. If the foreman has been con- 
sistently rating a worker as industrious, obedient, and loyal, 
and if his efficiency is good, a very convincing explanation 
will be necessary to secure approval of the worker's dis- 
missal. 

3. Reports on the size and causes of the turnover should 
be sent by the employment department to the general man- 
ager, labor supervisor, or president at least once a month. 
These reports should show the number of resignations, lay- 
offs and discharges by departments, classified according to 
the duration of employment and the total number of resig- 
nations and discharges in the entire plant due to specific 
causes. 

In a western shoe factory the reasons for the turnover 
are considered at the weekly meetings of the factory staff 
along with the other usual matters for consideration such 
as factory conditions, costs and production. The factory 
staff consists of the general manager, the superintendent 
(in charge of mechanical conditions, up-keep and repairs), 
the head of the efficiency department, the office manager, 
the store keeper, the production manager, and the employ- 
ment manager. 

4. Grievance systems. The opportunity of workmen to 
have an adequate hearing of their grievances checks the 



THE HANDLING OF MEN 379 

use of arbitrary methods by foremen. This subject is dis- 
cussed in the next section. 

In addition to establishing the fair and liberal treatment 
of the men as the definite policy of the business and of 
creating checks to see that this policy is observed, there are 
a number of miscellaneous means of improving the methods 
of foremen in handling men. Among these are : 

1. Example. 

2. More careful selection of foremen. 

3. Education of foremen. 

1. Example. 

The foremen should be treated by the manager or super- 
intendent in the same manner in which the foreman is 
expected to treat his men. Fair treatment of foremen by 
managers and superintendents does not, of course, assure 
that the workmen will be treated likewise by the foremen, 
but it tends to show the foremen the spirit and attitude 
which the management desires to prevail in the organization 
and thus tends to develop this spirit in them. Moreover, a 
foreman who is bullied and brow-beaten by those above him 
is unlikely to be in a state of mind to act fairly toward his 
men. As every business man well knows, nothing is more 
natural than for an angry executive to vent his anger on his 
subordinates. Every business man knows of organizations 
in which a chief executive, who gives way to sharp and vio- 
lent criticisms of his subordinates, periodically throws the 
entire organization into a state of anger and antagonism 
because the anger of the chief executive is passed on from 
one subordinate to another until it is vented on the ordinary 
workmen. 

A characteristic of the "drive" system of management is 
that the foremen as well as the workers are driven, so that 
the foremen in driving their men are simply passing on 
something which they have received from their superiors. 

2. Selection of foremen. 



380 THE TURNOVER OF FACTORY LABOR 

The type of man required to make a good foreman when 
the policy is to obtain the cooperation of the men is rad- 
ically different from the type required when the policy is 
to drive them. The selection of a different type of men 
for foremen in itself does much to alter the methods of 
handling men. 

3. Instruction of foremen. 

Considering the responsibility of their position and the 
possibilities which they possess for doing good or harm, 
it is surprising how little instruction foremen receive in the 
duties of their task. 

The most advantageous time to instruct men in the duties 
of foremanship is before they have become foremen, when 
they are open-minded and willing to learn and when there 
is no danger of their taking as an affront the effort to in- 
struct them. No establishment with a training department 
should permit any one to become a foreman or gang boss 
who has not undergone thorough training for the task. 
A company manufacturing rubber goods mentioned above, 10 
periodically selects a group of 50 men to whom it gives a 
three years' course which besides training them to perform 
every operation in the plant, includes English, arithmetic, 
economics, mechanical drawing, organization and manage- 
ment and rubber manufacturing practice. 11 The purpose 
of the course is to train men to be foremen. The company 
writes : "We consider the system invaluable." 12 A manu- 
facturer of electrical apparatus has a similar plan on a 
smaller scale. Groups of 6 to 8 boys, 18 to 21 years old, 
recommended by their foremen, are given a practical and 
theoretical course of two years in preparation for minor 
executive positions. 

So important is it that minor executives be thor- 

10 See above, p. 274. 
"Letter to the writer. 

12 Ibid, 



THE HANDLING OF MEN 381 

oughly competent, that one may safely predict that in 
the near future elaborate and rigorous training courses will 
exist for prospective minor executives in all large establish- 
ments, and that no one will be permitted to become a fore- 
man or gang boss without first having been thoroughly 
trained for the duties of the position. 

Methods of instructing those who* are already foremen 
are: 

(1) Lectures by a superior executive or executives on 
managerial problems. This plan was followed by the 
works manager of a Detroit automobile factory who every 
two weeks for five months gave a lecture on managerial 
problems lasting an hour and fifteen minutes. The plan 
was such a success that continuance of the lectures was 
planned for the next year. Some lectures were illustrated 
with slides. 

(2) Round table discussions. This is a common method 
which is highly successful. An advantage of it is that it 
consists of an informal discussion of problems, an exchange 
of ideas and experience, so that although the foremen are 
learning, they do not feel they are being taught. This is an 
important advantage for foremen take great pride in their 
practical knowledge, have a great contempt for formal 
instruction and do not take kindly to being taught. The 
efficiency director of an eastern company who gave a course 
of instruction to foremen using the round table method of 
informal discussions describes his experience as follows : 13 

"It is very difficult to pin the course of study to a well 
defined program with foremen who are a very independent 
set of men and fully realize how important they are to a 
business. 

"They regard themselves as the experts of the establish- 
ment and one must make their gatherings more like com- 
mittees for consultation rather than classes for instruction. 

"Letter to the writer. 



382 THE TURNOVER OF FACTORY LABOR 

"In 1 91 5 when we began more careful work with our 
foremen our business was passing through a depression 
and it was not difficult to get them together on company 
time. I took up a number of subjects with them, leading the 
discussion. Then I secured a number of speakers from 
outside, superintendents or practical men from other in- 
dustries." 

The subjects covered in the course included: 

1. Employment. 

2. Discipline. 

3. Planning. 

4. Safety. 

5. Hygiene. 

6. Steel. 

7. Inspection. 

8. Machines. 

9. Operations. 

A further advantage of the round table plan is that each 
foreman is expected to contribute as well as to receive 
ideas. Frequently he learns more in thinking up ideas to 
contribute than from what others say. 

(3) Study classes for foremen and other executives. 
This also is a common method. A description of the plan 
followed by the Dennison Manufacturing Company is given 
by Mr. C. E. Shaw of that company in the Bulletin of the 
National Association of Corporation schools. 14 The Alex- 
ander Hamilton Institute course was used as the basis of 
study. Groups of six men were formed, so far as possible 
no two of any group from the same field of factory work. 
Definite reading assignments were made. Each man made 
notes of items he wished discussed. The groups met once 
a week directly after closing time. A lunch was served 
followed by a discussion for several hours. In his article 

"December, 1915, p. 15. 



THE HANDLING OF MEN 383 

Mr. Shaw stated there were five groups with a prospect of 
three more. 

(4) Individual criticism, in personal conferences, of the 
methods used by foremen in handling help. This method 
has been used by the Packard Motor Car Co. with success. 
The following account of the method used is given by 
Mr. J. H. Weller of the Packard Company : 15 

"The educational work consists of a series of personal 
talks with the men. This work is carried on by our Super- 
visor of Labor, who devotes all his time to welfare and 
educational work, and who is endowed with full authority 
to handle the labor situation and the educational work for 
the best interests of all concerned, and it is his duty to 
study each man individually. All his good traits and 
habits, as well as his fauits and weaknesses are carefully 
noted. He is invited into a private room where one hour 
is spent in talking over the subject of departmental super- 
vision. During the course of these talks reference is made 
in a very friendly but candid manner to all his failings, and 
suggestions are made which are helpful to him in correcting 
them. He is given very explicit instructions as to the 
proper method of handling his help; how to develop the 
unskilled into skilled, expert, and efficient workmen; how 
to get them interested in their own future welfare as 
well as that of the company; how to develop loyalty and 
make each man in his department feel that he is an im- 
portant factor in our institution, and that the company has 
a personal interest in him ; how he should meet and instruct 
new men coming into his department and make them feel 
at ease and at home — tell them what he proposes to do for 
them, and what he expects them to do for him. His 
attention is called to the folly of simply giving them a job 
and then leaving them to work out their own salvation, with 

35 Proceedings of the National Association of Corporation Schools, 
1914, PP- 346, 347. 



384 THE TURNOVER OF FACTORY LABOR 

the little help they may be able to get from the workmen 
around them. 

"Their attention is called to the importance of keeping 
efficient men in their departments for long periods of time ; 
that their department must positively be such at all times 
that their men will respect them, that is, they must be sober, 
truthful, honest, busy, and above all punctual; that they 
must be the first man in the department in the morning, and 
the last one out in the evening; that they positively must 
keep faith with their workmen, and keep every promise 
made to them; that they cannot abuse them, or swear at 
them, and when it is necessary to correct them, to call 
them to one side and talk to them with all kindness but with 
candor ; that if they will not respond to that kind of treat- 
ment they should dismiss them, but in doing so, they should 
do it privately, give every man a reason for doing so firmly 
but briefly; they are told that our company's policy is to 
retain competent and loyal men, and that sufficient evi- 
dence of prejudice or bad temper against loyal workmen 
will be considered just cause for their dismissal and it is 
especially urged upon them as one of their most important 
duties to train themselves to be affable, honest, straightfor- 
ward, earnest, calm and always ready to assist and advise 
their men, both as to their duties and their personal wel- 
fare." 

After the talk the foremen were observed for sixty days. 
At the end of that time they were called into the office and 
the matter gone over again to see what they had accom- 
plished and in what they had failed. 

The main factor in the success of this work probably was 
the spirit in which it was undertaken, which was to make 
the criticism constructive rather than destructive, to cause 
the foreman to feel an effort was being made to help him 
rather than to find fault with him. The cardinal principle 
may be laid down that in endeavoring to change the methods 



THE HANDLING OF MEN 385 

of foremen little will be accomplished by a fault-finding 
attitude except to arouse the anger and combative instinct 
of foremen. Their cooperation can be won only by con- 
vincing them that an effort is being made to assist them in 
their work. 

The supervisor of labor 16 should be continuously carry- 
ing on informal advisory work to improve the methods used 
by minor executives in handling men. The supervisor of 
labor should so command the confidence of the foremen 
that they will voluntarily seek his advice concerning their 
more important problems of handling men. As the labor 
supervisor of a Detroit plant says, "You can tell a man 
twice as much when he comes to you for advice as when 
you call him in to criticise him." 

The foremen of the future will be very different from 
the foremen of the present. A different type of men will 
be selected — less of pure drivers but men who combine 
diplomacy and a broad understanding of human nature 
with the faculty of getting things done. The character of 
foremen is also largely determined by the traditions and 
ideals of the organization. The traditions and ideals of 
the business organizations of the future will be decidedly 
more liberal than those of business organizations of the 
present. The future foremen's attitude and point of view 
will also be molded by definite training received before they 
assume their duties. Finally, the foremen will owe their 
promotion in large measure to the supervisor of labor and 
will be assisted by him in learning the ropes during their 
first weeks on the job. Consequently they will be much 
more amenable than are foremen of the present to advice 
and criticism from the labor supervisor. 

In connection with the problem of improving the methods 
of foremen in handling men should be mentioned the effect 

16 See next chapter for a description of the duties of the super- 
visor of labor. 



386 THE TURNOVER OF FACTORY LABOR 

of better methods of planning and routing work upon the 
foremen's handling of men. The nervous strain which is 
imposed upon foremen by the planning and routing of work 
in itself complicates the problem of securing good relations 
between them and their men. The imperfectly planned 
schedules made by the foremen are bound to break down 
from time to time. Then arises the problem in spite of the 
miscalculations of the foreman of getting out the order 
or required output on schedule time. The maintenance of 
schedules is placed ahead of the convenience of the men. 
The foreman endeavors to force or induce workers to 
speed up. Overtime becomes necessary. The strain and 
pressure of the situation are ideally adapted to produce dis- 
cord, friction, and misunderstandings. In so far as the 
careful planning, routing and scheduling of work by a 
planning department prevent such situations and in so far 
as they relieve the daily strain under which the foremen 
work, they contribute to the establishment of better methods 
of handling men. 

5. Provision of adequate means of handling griev- 
ances. 

The importance of willingness to adjust all reasonable 
complaints as a means of maintaining and increasing good 
will has long been realized by sales departments and this 
willingness is frequently exploited prominently as a matter 
of advertising. Some firms go so far as to decree that the 
customer is always right. The good will of workmen is 
scarcely less valuable than the good will of customers and 
if a liberal attitude toward complaints is profitable in deal- 
ing with customers, it should be profitable also in dealing 
with laborers. 

The problem of adequately handling grievances is not 
primarily a problem of providing an organization to adjust 
grievances, for the organization required is simple, but a 
problem of convincing the workmen that they will receive 



THE HANDLING OF MEN 387 

a fair hearing and an honest decision and that they will not 
be prejudiced in the eyes of the management nor suffer dis- 
crimination because they voice their complaints. Under 
the "drive" system of management it is the policy of both 
central management and foremen to discourage the pres- 
entation of grievances. As was pointed out above, the 
management fears that liberality in hearing complaints 
would give the workmen exaggerated notions of their 
rights and the management desires to keep the workers' 
minds off the subject of rights. The autocratic point 
of view which prevails under the system even frequently 
causes the making of complaints by workmen to be re- 
garded as presumptuous, as meddling in something which 
is none of their business. If workers do not like or ap- 
prove of conditions, the proper thing for them to do is to 
go elsewhere. The notion also prevails that the mainte- 
nance of discipline requires that the central management 
support the decision of the foreman on appeal right or 
wrong. The foremen's feeling of independence and of 
their right to rule their own departments also cause them 
to consider the overruling of their decisions as an affront 
and a worker who procures an overruling is likely to suffer 
gross discrimination at the hands of the foreman. The re- 
sult has been to create a strong tradition among workers 
that complaints are unwelcome, that workers who make 
complaints instead of obtaining satisfaction are likely "to 
get in bad." The traditions of the "drive" system are the 
greatest obstacle to the successful operation of a grievance 
system. 

The lack of confidence of the men in the willingness of 
the management to give a fair hearing to complaints can 
be overcome only by the workers' finding by experience 
that the management intends to do the fair thing. This 
can be made more evident to them in the following ways. 

I. If the management in its every day dealings with the 



388 THE TURNOVER OF FACTORY LABOR 

men displays a liberal, broad minded attitude, the men 
gradually develop confidence that the fundamental policy 
of the management is liberalism and become more willing 
to voice their complaints. 

2. Confidence is in a large degree a personal matter. 
One man may be highly successful in commanding the 
confidence of workers, another with equally honest inten- 
tions may completely fail. The selection of the person or 
persons who are to have charge of the adjustment of griev- 
ances is far more important than the form of the organiza- 
tion for handling disputes. 

3. In order to indicate in a definite and conspicuous way 
that appeals from unsatisfactory decisions of foremen are 
welcome, some officials set aside a definite time, a portion 
of the morning or afternoon of certain days of the week 
as a regular time for men with complaints to appear before 
them. This is the practice of the superintendent of trans- 
portation of an eastern street railway company, who sets 
aside the afternoon of one day each week for the hearing 
of workers' grievances. 17 

4. In some shops, in order to win the confidence of the 
men in the grievance system, grievances are decided by a 
committee upon which the workers and management are 
equally represented. This tends to foster the confidence 
of the workmen in three ways. In the first place, the fact 
that representatives of the workers have a voice in deciding 
complaints tends to give workers confidence in the justice 
of the decisions, providing the workers are permitted freely 
to choose their own representatives and providing no attempt 
is made to coerce the workers' representatives in their de- 
cisions. In the second place the very fact that the man- 
agement allows elected representatives of the workers a 
voice in deciding grievances is an indication to the workmen 
of the honesty of the management's intentions. In the 

17 See above, p. 231. 



THE HANDLING OF MEN 389 

third place the workers' representatives on the committee 
affect the decisions of the committee because they bring 
about a more effective presentation of the workmen's point 
of view. Even though the management desires sincerely to 
settle grievances with perfect equity, its inability to see 
matters from the workmen's standpoint prevents due 
weight being given to their interests. By remedying this 
defect workmen's representatives on the committee raise 
the equity of the decisions. This in itself tends to develop 
the workmen's confidence in the grievance system. 

Joint committees possess several additional advantages 
of importance. One of the most important is that the 
workers' representatives on the committee act as confi- 
dants and counselors of the workers. Workers who are 
too timid to present grievances to the foremen or to the 
committee may be willing to tell them to their representa- 
tive on the committee who in turn will take up the matter 
informally with the foreman and if necessary with the com- 
mittee or higher officials. The workers' representatives 
greatly reduce the labor of handling grievances. Having 
more standing with the foremen than the ordinary workers 
and being able to present cases more effectively, the com- 
mittee members obtain adjustments from the foremen 
which ordinary workers could not obtain, thereby obviating 
the necessity of appeals to the committee. Being familiar 
with the precedents established by previous settlements and 
knowing something of the company's point of view, the 
workers' representatives know fairly definitely in what 
cases the worker has a chance of obtaining redress and in 
what cases redress is hopeless. Because of their influence 
with the workers the representatives are able to dissuade 
them from presenting many foolish grievances and griev- 
ances for which there is no hope of redress. 

One of the chief obstacles to the settlement of grievances 
is difficulty in obtaining accurate knowledge of the facts. 



390 THE TURNOVER OF FACTORY LABOR 

Because the workers' representatives enjoy the confidence 
of the workers to a greater degree than officials of the 
company, they are especially useful in gathering facts. An- 
other difficulty arises from the inability of many workers to 
present their cases clearly and effectively. By acting as 
spokesmen for the workers the workers' representatives 
can give the committee a far clearer and more convincing 
statement of the grievance than the complainant himself, 
both saving the time of the committee and often no doubt 
preventing the miscarriage of justice. 

Apart from their value in adjusting grievances joint 
committees are valuable because, by bringing officials and 
workers together frequently on intimate terms, they pro- 
mote better understanding between the leaders among the 
workers and officials. It cannot be too emphatically 
stressed how much the inherent differences of interest be- 
tween workers and employers are magnified into bitter 
antagonism and extreme distrust because of lack of close 
contact. 

One of the most difficult and important problems in the 
operation of a grievance system is how to prevent discrimi- 
nation on the part of the foremen against workmen who 
appeal from the foremen's decisions. The very system of 
handling grievances in itself protects in a measure, since 
it gives workers a means of redress against gross arid 
easily demonstrable discrimination. It does not, however, 
protect workers against gross discriminations which are 
not self-evident (such as underrating of workers if an 
individual merit rating system exists), and against petty 
discriminations which individually are too slight to consti- 
tute cause for complaint but which collectively may be 
serious. These can be guarded against only by educating 
the foremen to see the purpose and importance of the griev- 
ance system and the necessity of their cooperation to render 
it successful. Foremen should have clearly explained to 



THE HANDLING OF MEN 391 

them the purpose and theory underlying a liberal grievance 
system, the importance of its success from the practical 
business standpoint and the dependence of its success upon 
their cooperation. When foremen clearly understand the 
purpose of the grievance system and the reason why 
their cooperation is necessary, they are likely to be willing 
to cooperate. The reason for and importance of a liberal 
policy in dealing with grievances should be thoroughly ex- 
plained to workers who are being trained to become fore- 
men. 

Foremen trained under the cooperative system of man- 
agement will respond much more readily to such education 
than foremen trained under the "drive" system. The keen 
resentment which foremen trained under the "drive" sys- 
tem are so likely to feel at having their decisions in regard 
to workers* grievances overruled is due less to an inherent 
natural dislike at being reversed than to the traditions 
which prevail under the "drive" system that it is out of 
place for workmen to present grievances at all and the 
thought that the foreman is supreme in his little domain. 
Under traditions which instil in the foremen less preten- 
tious notions of their authority and more liberal notions of 
workmen's rights, foremen will less resent the overruling 
of their decisions, and the danger of their discriminating 
against the workers who appeal will be consequently less. 

The organization for handling grievances need not be 
elaborate. The essential feature is that there must be a 
source of appeal from the decisions of the foreman, for the 
foreman is often a party to the dispute and hence not in 
a position to render an impartial decision. If there is a 
supervisor of labor in the organization he is the natural 
court of appeal. The supervisor of labor, if he has the 
authority which is logically his, has authority in all matters 
involving primarily personal relations. He is a specialist 



392 THE TURNOVER OF FACTORY LABOR 

in the handling of men and he should possess better than 
any other official the tact, insight into human nature, and 
knowledge of the workmen's point of view which a griev- 
ance adjuster must have. 

When complaints relate to operating methods such as 
rate limits, defective materials, tools or machinery, delay 
in obtaining materials, inadequate crane service, etc., or 
when their adjustment requires changes in manufacturing 
processes or in equipment, the labor supervisor cannot ren- 
der an authoritative decision, for matters are involved which 
fall within the sphere of other officials. Even in matters 
concerning which the supervisor of labor cannot render 
authoritative decisions, the workmen should have the right 
to appeal to the labor supervisor because officials in the me- 
chanical or production departments, who are primarily 
interested in mechanical or production aspects of the ques- 
tion and see it from that point of view, are likely not to 
give due consideration to the human elements involved. 
The supervisor of labor who better appreciates the worker's 
point of view will give more weight in arriving at a decision 
to the human element. He can present the worker's point 
of view far more effectively and with greater prestige than 
can the worker. It should be the duty of the supervisor of 
labor on appeal of workers in these cases to ascertain the 
facts, decide in his opinion what should be done, and 
seek the approval of the proper authorities for his recom- 
mendations. In important cases in which he is unable to 
obtain a satisfactory adjustment from the production or 
mechanical departments, he should take up the matter on 
behalf of the workers with higher authorities. 

Several examples of more elaborate organizations for 
adjusting grievances are worth noting. The following is 
a description of the committee plan of a manufacturer of 
electrical machinery. There is no union in the plant. The 



THE HANDLING OF MEN 393 

committee was established after a short strike because it 
was believed to be good policy to provide means for airing 
complaints. The success of the committee apparently is 
largely due to the chairman, an assistant general superin- 
tendent, a man of liberal ideas and possessing a good under- 
standing of the workmen's point of view, who brought 
about the establishment of the committee in face of strong 
skepticism on the part of other executives. 

The committee consists of twelve members, six repre- 
senting the company and six representing the men. The 
original committee consisted of six members, three from 
the men and three from the company, but it was thought 
advisable to increase it. The chairman states that twelve 
is too large and recommends a committee of about eight. 
The committee has a secretary, who is not a member. 

The representatives of the men are chosen indirectly, by 
delegates, a given number of men electing one delegate. At 
the time of the first election there were 39 delegates who 
elected three representatives of the men. The men's rep- 
resentatives serve two years — three being elected eaoh 
year so that there are always experienced men on the com- 
mittee. The chairman of the committee says of the repre- 
sentatives of the men, "They are everything you could want. 
They are able to see what is right and are not afraid to 
say what is wrong. The men pick 'out live wires, what 
some people call 'agitators/ They make the best commit- 
tee men, because they give you something to push against. 
You can't get any satisfaction with men who always agree 
with everything you say." 

The representatives of the company are superintendents, 
assistant superintendents, and general foremen. The 
chairman of the committee, who is a company representa- 
tive, is an assistant general superintendent. There are no 
foremen on the committee. Particular attention is given to 



394 THE TURNOVER OF FACTORY LABOR 

placing on the committee only broad gauged men who can 
take a liberal view of things. 

The committee meets on the first and third Mondays of 
each month at 2 p.m. It was found desirable to set a defi- 
nite time in order that the company's representatives, who 
are men of many responsibilities, could keep a time open 
for the meeting. The representatives of the men are paid 
for the time given to the work of the committee at the rate 
of their average hourly earnings and the amount is charged 
to the grievance committee's account. 

Under the rules of the committee a grievance is not a 
grievance until it has been taken up with the foreman. 
Some grievances, however, it is not advisable to take up 
with the foremen and in these exceptional cases the com- 
mittee takes primary action. 

For filing complaints a grievance blank is provided which 
may be obtained from the time-keepers or from members of 
the committee. Form H is a reduced facsimile of the 
blank. 

On the reverse of the blank are printed extracts from the 
"Rules of Procedure" which tell the workman how his 
complaint will be handled. 

An advantage in requiring the men to write out their 
complaints, according to the secretary of the committee, is 
that often when they come to put the grievance down in 
black and white they find that they really have no cause 
for complaint at all. Although the committee's rule re- 
quires that all complaints be in writing the committee finds 
that some men are afraid to sign their names to written 
complaints. The committee, therefore, investigates com- 
plaints presented verbally to the members. 

The grievance blank is forwarded in a sealed envelope 
or given personally to the secretary of the committee who 
acknowledges it within two days on the form shown by 
Form I, 



THE HANDLING OF MEN 395 

GRIEVANCE BLANK 

Please state your Grievance so that it can be readily understood. 
If necessary use another sheet of paper, in which case it should be 
securely attached. Be sure to sign your name and department in 
full. A separate blank should be used for each grievance. 

Subject of Grievance 



What is your foreman's name? Has this 

matter been taken up with your foreman? 

When? With your general 

foreman or superintendent? t 

What was the reason given for not correcting grievance? 



Date 191 .. . Signed 

Department Check No 

NOTE: — When this form has been properly filled in, forward it in 
a sealed envelope by shop mail to the Secretary of the Griev- 
ance Committee or deliver it to the office^of the Committee 
at the North End of Section D. 



(Form H) 



396 THE TURNOVER OF FACTORY LABOR 

OFFICE OF GRIEVANCE COMMITTEE 
North End of Section D 

Date 191. . . . 

Mr > Check No.. . 

Sec 



We are in receipt of your communication of. 
in regard to 



The matter will be considered by the Committee at an early 
date and you will be notified accordingly. 

Very truly yours, Sec. of Grievance Committee. 

(Form I) 

The secretary of the committee has a most important 
position requiring great tact and familiarity with shop con- 
ditions. On the receipt of a complaint it is his duty to 
round up evidence, to discover what witnesses to call and 
in every way to prepare the case for consideration by the 
committee. His first step is to go directly to the complain- 
ant and find out the details. The men sometimes cannot 
analyze their grievances and the statements which come to 
the secretary are often incoherent. The secretary gets 
the issue clearly framed. Then he discovers who else 
knows about the conditions and can be called to testify. 
He finds in what ways manufacturing operations cause the 
condition complained of and what changes in operating 
routine will be necessary in order to adjust the complaint. 
It is apparent that in order to do this work the secretary 
must be singularly able to command the confidence of men 
and that he possess a thorough knowledge of shop condi- 
tions and manufacturing processes. 

In many cases the complaint is such that it can be ad- 
justed on the spot. In such cases, the secretary often acts 
as adjuster. 



THE HANDLING OF MEN 



397 



In order to economize the member's time a great deal of 
the committee's work is done by sub-committees. The 
secretary uses his discretion in deciding which cases de- 
mand the attention of the full committee and which can 
be handled by sub-committees. In effect he selects the sub- 
committees also, calling on those men who can best afford 
the time, and arranging the time of the meeting and the 
attendance of witnesses. 

In the first half year of its existence the committee re- 
ceived between 250 and 300 complaints. Of these all but 
J J were adjusted by the secretary or by subcommittees. 
The nature and outcome of 41 main cases which came be- 
fore the whole committee was as follows : 



Nature of complaint 


Returned (beyond 

jurisdiction 

of committee) 


In favor 

of 

complainant 


Against 
complainant 


Employment 

(Reinstatement) 

Compensation 


6 

3 
2 
2 

13 


2 
4 

4 

1 
8 

4 
23 


3 


System of work 

Working conditions .... 

Piece rate limits 

Discrimination 

Management (Relations 
with foremen, etc.) 
Totals 


1 

1 

5 





The chairman states that the class of cases which they 
had expected would be most numerous, relating to rate 
limits (the company uses a bonus system) has been among 
the least important, as the above table shows, and that 
various sorts of discrimination have produced the most 
numerous complaints. The following list of complaints 
shows the nature of the committee's work: "Unjust lay- 
off," "Telephone messages not delivered" — (this man had 
sickness in his family), "Unjust penalty," "Noon hour 
work," "Stolen tools," "Relief benefit," "Excessive noises," 



39« THE TURNOVER OF FACTORY LABOR 

"Unfair distribution of group earnings," "Gang not formed 
right to get the most done," "Weak hand but required to 
do heavy lifting." 

The committee has no executive authority but its recom- 
mendations are usually adopted. A record is kept of pro- 
ceedings and decisions for the purpose of building up 
precedents by which future cases can be decided. 

Summing up the value of the committee the chairman 
says that it is valuable both as a preventive of complaints 
and as a safety valve. Its very existence tends to prevent 
many abuses from being born because the foremen do not 
wish the men to complain. It acts as a safety valve, be- 
cause, as the chairman puts it, it brings things to the sur- 
face which would not otherwise be known, but which would 
smolder ready to break out at any time. Finally, it gives 
the men confidence in the company's willingness to hear 
their complaints and give them a square deal. 

Probably the best known example of employees' being 
granted a voice in handling grievances and certainly the 
one in which the employees have the greatest voice is that 
of William Filene Sons Co., Boston. 18 The employees of 
the store elect an Arbitration Board which consists of 
twelve members, one selected from each section of the 
store, and of a chairman appointed by the Filene Coopera- 
tive Association (to which every employee belongs by virtue 
of employment) from the Council of the Association which 
is elected by popular vote of the members. 

The powers of the Arbitration Board extend to all cases 
of difference relating to 

i. An employee and the management. 

2. Two or more employees in matters of store interests. 

3. The justice of a rule affecting an employee. 

18 The following account is based on a description of the plan 
contained in a booklet published by the store, entitled "A Thumb- 
nail Sketch of the Filene Cooperative Association." 



THE HANDLING OF MEN 399 

The Board may both initiate investigations and grant 
hearings to any employee so desiring. The decision of the 
Board is final in all cases within its jurisdiction. In cases of 
dismissal or increase of pay a two-thirds vote of the entire 
Board is necessary to decide, but in all other cases a major- 
ity vote of the entire Board is decisive. In cases of salary 
deductions such a vote of the Board may be an order for 
refund. In minor cases a majority of the whole Board may 
authorize the chairman to appoint a sub-committee of three 
members to act as an Arbitration Committee. The sub- 
committee's decision may be appealed by either party to the 
Board. 

The questions most frequently brought before the Board 
are dismissals, change in position or wage, transfers, loca- 
tion in the store, missing sales, shortages, lost packages, 
breakages, torn or lost garments, differences between em- 
ployees, payment for suggestions. Over five hundred cases 
came before the Board between January 1, 1901, and Janu- 
ary 1, 1915. From September, 1912, to September, 1913, 
the Board handled seventy cases, the greatest number ever 
handled in one year up to that time. The decisions in these 
cases were in favor of the appellant in thirty-eight, against 
the appellant in thirty-two. The decisions for the entire 
period of existence appear to be about equally divided in 
favor of each side. 

The member of the Board elected from each section of 
the store is the counselor or advisor of that section. The 
duties of the section counselor are: 

1. To advise the employees in his section on questions 
arising in the conduct of their work. 

2. To disseminate information concerning the Arbitra- 
tion Board among the people of his section. 

3. To instruct appellants in the detail of presenting their 
cases to the Board. 

In other words the Board members perform very much 



400 THE TURNOVER OF FACTORY LABOR 

the same work among the workers which it was pointed 
out above that employees' representatives on a joint griev- 
ance board are peculiarly able to perform. 

6. Rewards for continuous service. 

It may be profitable to promote stability by paying an 
extra wage for continuous service. An eastern piano man- 
ufacturer since 1913 has paid a bonus of 2 percent of 
wages to first year men, 3 percent to second year men and 
4 percent to men employed two years or over. The bonus 
is paid in semi-annual instalments on July 1st and January 
1st. In 191 5 the turnover was less than one-third the turn- 
over in 191 3 in spite of the fact that there was a good de- 
mand for labor from nearby munition centers. A St. Louis 
stove manufacturer since 191 3 has distributed about $10,000 
among his employees just before Christmas, as follows : 

Men employed continuously 2 and 3 years $10 each 



it 


u 


it 


tt 


it 


tt 


tt 


It 


it 


tt 


tt 


it 



a 


4 


ii 


5 


«( 


20 


it 


It 


6 


tt 


7 


tt 


30 


(I 


tt 


8 


It 


9 


tt 


40 


a 


it 


10 


ti 


11 


it 


50 


tt 


tt 


12 


ti 


13 


it 


60 


tt 


tt 


14 


it 


15 


tt 


80 


tt 


it 


T A 




re rwi 


' r\1TCH 


rr\r\ 


a 



This plan is unique in that the shares are independent of 
the workman's earnings. Unskilled men receive as much as 
skilled men of equal period of service. On December 15, 
191 5, 245, or 76.1 percent of a force of 335, had been em- 
ployed two years or over, a remarkably large percentage. 

A middle western plant pays a bonus at the end of the 
year of 10 percent of the earnings of each worker to those 
workers who have been in the service of the company for 
the entire year. The effect of this bonus upon stability is 
shown by a comparison of the resignation rate in Decem- 
ber, immediately before the payment of the bonus, and in 
January, immediately after the payment of the bonus. The 



THE HANDLING OF MEN 401 

resignation rate per 100 workers in these two months has 
been as follows: 

1908 to 1909 to i9ioto 191 1 to 1912 to l9i3to l9l4to 
1909 1910 1911 1912 1913 1914 1915 

December 7 .4 .9 1.2 .3 .6 .1 

January 2.1 3.1 2.2 2.0 2.8 1.6 .9 

As the resignation rate usually varies but slightly between 
December and January it is evident that the bonus pay- 
ment exerts a decided effect in inducing the men to postpone 
their resignations until January. 

The John B. Stetson Company, by paying a bonus which 
was gradually increased to 20 percent of earnings, prac- 
tically eliminated changes among its hat sizers. 19 Because 
of the success of the plan among the hat sizers it was ap- 
plied to the hat turners with the same effect. A bonus of 
either a fixed cash amount or a percentage of earnings is 
now given to every employee of the factory who works 
steadily the entire year. 20 

The Du Pont Powder Company on April 1, 191 6, put into 
effect a service reward plan at its Arlington plant. The 
plan does not include foremen or department heads. All 
other employees who have been employed 2 years and 
less than 5 receive 5 percent of their wages in separate 
envelopes each month, those employed 5 years and less than 
10, 10 percent of their wages, those employed 10 years and 
less than 15, 15 percent, those employed 15 years or more, 
20 percent. 

It is a common practice for street railway companies to 
increase the wages of motormen and conductors one cent 
per hour for each year of service up to 5 years. Thus if 

"Milton D. Gehris, "Employment Problems and How the John 
B. Stetson Company Meets Them," Annals of the American Acad- 
emy of Political and Social Science, v. LXV, May 1916, on ''Per- 
sonnel and Employment Problems," pp. 756-757. 

^Gehris, Ibid., p. 157. 



.4Q2 THE TURNOVER OF FACTORY LABOR 

the rate for first year men is 25 cents per hour, the rate 
for second year men is 26 cents, for third year men 27 
cents, etc. 

The Bullard Machine Tool Company pays a service pre- 
mium of 10 percent of weekly wages earned during regular 
hours. A service premium voucher is enclosed in each 
pay envelope. The vouchers are not payable until four 
weeks after the date of issue, and then only providing 
the recipient is still in the employ of the company. The 
vouchers are non-transferable. By leaving the employ of 
the company a worker loses a premium of ten percent of 
his regular earnings for four weeks. 21 This plan is said to 
have materially reduced the turnover. 

Most profit sharing plans are rewards for continuous 
service since as a rule only employees who have served a 
stipulated period, usually a year or two, share in the profits. 

7. Miscellaneous aids to the establishment of good 
relations between working force and management. 

The means discussed in this and the preceding chapters 
constitute the most important ways of winning the work- 
men's good will and of reducing the turnover, because they 
affect the worker's most vital interests. Other things 
which the management may do are distinctly less important. 
The so-called "welfare" work is of practically no influence 
if wages, working conditions and treatment are not right, 
because it affects only interests of secondary importance 
to the worker. Moreover, many of the benefits of "wel- 
fare" work are not felt every day but only on special occa- 
sions. As one manufacturer says, "You can't kick a man 
around for 29 days and expect to win his favor by shower- 
ing favors on him on the 30th." 

When the most vital interests of the worker have been 
provided for, however, there are a number of ways in which 

* A. E. Freeland : "Wages for Ability, Output and Service," 
Iron Age, v. XCIX, pp. I537-I540. 



THE HANDLING OF MEN 403 

the employer can substantially assist his workers and which 
are likely in many cases to aid in arousing their permanent 
good will. The occasions on which assistance will be best 
appreciated are usually more or less crises in the lives of 
the workers when their needs are great. 

Sickness, financial and legal difficulties are all likely to 
cause acute needs among workers in which assistance is 
greatly appreciated. If a mutual benefit association does 
not exist workers who are off on account of illness or ill 
health feel the need of sick benefits. Saving is such a 
slow and difficult task for a majority of workers that a 
fairly extended illness may wipe out the savings of several 
years. It is significant that "in 75 percent of the families 
receiving aid from the New York Charity Organization 
Society sickness was a very serious disabling condition. 
About eight-tenths of the relief expenditure of the New 
York Association for Improving the Condition of the Poor 
is made necessary by sickness." 22 On account of the 
severe financial strain imposed by illness of moderate or 
long duration, the payment of sick benefits meets a pressing 
need and is likely to be appreciated. 

The number of cases of illness in which sickness bene- 
fits would in all probability be a substantial aid is surpris- 
ingly large. It is estimated that the average number of 
working days lost on account of sickness per wage earner 
in the United States is nine days per year. 23 The average 
loss is, of course, considerably greater when calculated up- 
on the basis of only those workers suffering loss of time. 

Table XXXIX shows the amount of sickness among 
the members of the Beneficial Association of a large eastern 

22 John B. Andrews, "Health Insurance," Proceedings of the 
National Association for the Study and Prevention of Tubercu- 
losis, Twelfth Annual Meeting, May, 1916. 

23 Andrews, Ibid. 



404 THE TURNOVER OF FACTORY LABOR 
TABLE XXXIX 

AMOUNT OF SICKNESS AMONG THE EMPLOYEES OF AN EASTERN 
ELECTRIC LIGHT AND POWER COMPANY 



Year 


Average 

number 

of 


Total number 

of days lost 

on account 

of sickness 


Cases of 
sickness per 


Average 
number 
of days 


Average 
duration 




members 


1,000 members 


lost per 
member 


per case 


1907 

8 mos. 


- 980 


2,920 (a) 


199.0(a) 


2.98(0) 


15 days 


1908 


1,196 


3,9o6 


219.9 


3 


26 


14 


1909 


1,258 


3,55i 


166. I 


2 


82 


17 


1910 


1,369 


4,5o6 


204.2 


3 


29 


iS3 


1911 


1,622 


5,065 


206.2 


3 


13 


14.3 


1912 


1,796 


6,704 


209.4 


3 


73 


17.2 


1913 


1,984 


7,130 


209.2 


3 


59 


17.0 


1914 


2,199 


7,849 


196.4 


3 


57 


17.0 


1915 


2,345 


8,427 


195-9 


3-59 


18. 1 



(a) Calculated on a yearly basis for comparison with other years 
from data for 8 months. 



electric light and power company. 24 These figures do not 
include all sickness among the members but only cases the 
duration of which was one week or more. 

These data show that nearly 20 percent of the mem- 
bers annually suffered cases of sickness of more than one 
week's duration each and that the average duration per 
case (of the cases of one week's duration or more) was 
from two to two and one half weeks. 25 

The sickness rate among the employees of another large 
eastern public service company operating street railways 
and furnishing electric light and power is shown in Table 
XL. 26 These figures also include only cases of sickness of 

24 Figures based on the Annual Reports of the Employees' Bene- 
ficial Association. 

25 The number of cases of sickness per 1000 members does not, 
of course, exactly express the number of members sick per 1000 
because some members experienced several cases. 

26 From Report of the Welfare Department. 



THE HANDLING OF MEN 



405 



TABLE XL 

AMOUNT OF SICKNESS AMONG THE EMPLOYEES OF AN 
EASTERN PUBLIC SERVICE COMPANY 



Year 


Number 

of 

employees 


Total days 
lost on 

account of 
sickness 


Cases of 

sickness per 

1,000 employees 


Average 
number 
of days 
lost per 
employee 


Average 
duration 
per case 


1911 
1912 

1913 
1914 


IO,2l5 
10,901 
10,988 
10,728 


30,526 
31,989 
33,674 
36,748 


I05.5 
103. 1 

H3-5 
118. 


2.98 

2-93 
3.06 

3-44 


28.49 
28.46 
26.98 
29.03 



more than one week in duration. Approximately 10 percent 
of the employees of this company suffered cases of sickness 
of more than one week in duration each and the average 
duration per case (of the cases of over one week's dura- 
tion) was nearly 30 days. 27 

27 Among women in Indiana retail stores and garment factories 
and in the Boston retail stores the Bureau of Labor Statistics 
found a higher rate. Among 711 women employed in Indiana 
stores the Bureau found 153 cases of sickness averaging 33.5 days 
each. These figures cover only the portion of the time since the 
women had entered industry. Some had not been engaged in indus- 
try for the entire year. The period of employment in industry for 
the entire group was equivalent to a full year in industry for 653. 
The rate per 1000 per year on the basis of 653 employed a full 
year is 234.3, the days of sickness per 1000 on the same basis 
7,849 (U. S. Bureau of Labor Statistics, Bulletin, No. 160, p. 56). 
Among 517 women in Indiana garment factories the Bureau found 
135 cases of sickness averaging 29.0 days each, a rate of 273.6 
cases per 1000 workers per year and of 7,933 days of sickness per 
1000 workers per year (Bulletin, No. 160, p. 90). Among 1,156 
employed in Boston retail stores the large proportion of 907 
reported 2,061 weeks of unemployment due to sickness or 2.27 
weeks per individual. These figures cover only the portion of the 
year since the workers had entered industry and before they had 
left industry. Some of the workers did not enter industry until 
after the beginning of the year and others left it before the end 



406 THE TURNOVER OF FACTORY LABOR 

Assistance to workers who become involved with loan 
sharks is highly appreciated. The welfare man of an east- 
ern firm employing about 5,000 men prevented about 300 
cases of garnishment in 18 months. The company bought 
the claim securing a general release. The company then 
aided the worker in securing a loan from the Morris Plan 
bank in the city, with which he compensated the company. 
The men paid back the loan to the bank at the rate of $1 
or $2 per week. 

Mr. Richard A. Feiss states that the policy of his com- 
pany in fighting every case of the loan shark evil in the 
courts has led loan sharks to refuse to lend money to their 
employees. 28 

of the year. The total number of weeks in industry for the group 
during the year was 57,901. The period of unemployment on 
account of sickness was 3.56 percent of the total time in the period 
covered by the reports (U. S. Bureau of Labor Statistics, Bulletin, 
No. 182, p. 67). Among another group of 346 women employed 
in Boston retail stores the Bureau found that an average of 8.2 
percent of an average total unemployment of 16.9 weeks of unem- 
ployment, or 1.38 weeks, was caused by illness of the worker. 
This was 2.95 percent of an average possible employment per 
individual which (deducting the time during the year before the 
workers had entered industry or after they had left) was 47.0 
weeks (Bulletin, No. 182, p. 53). 

There are two slight errors in the figures relating to the Boston 
workers. The number of weeks of illness among the first group is 
given as 1,162 full weeks of 6 consecutive working days. These 
were counted as full weeks in the above calculation, although it 
is unknown in how many instances the seventh non-working day 
was also a sick day. In a large proportion of cases it undoubt- 
edly was. The 6,295^ of scattered days of sickness reported by 
the Bureau were reduced to weeks by dividing by 7. 

28 "Personal Relationship as a Basis of Scientific Management," 
Bulletin of the Society to Promote the Science of Management, 
v. I, No. 6, Annals of the American Academy of Political and 
Social Science, v. LXV, May 1916, on "Personnel and Employment 
Problems," p. 45. 



THE HANDLING OF MEN 407 

The legal department of the company can be of material 
assistance to workers in many ways. Besides assisting 
those who are in the clutches of loan sharks, it can give 
advice in domestic troubles, in disputes with landlords, 
draw wills, etc. A manufacturer of rubber goods employs 
an attorney who spends two afternoons a week giving free 
and confidential legal advice to the employees. The welfare 
man of the eastern concern mentioned in the preceding 
paragraph, who has had a legal training, drew 70 wills for 
employees of the concern in 18 months. Legal counsel and 
advice concerning real estate and investments is said to 
be given gratis to between 150 and 200 employees daily by 
the legal department of the Ford Motor Company. The 
Detroit factory and office force at the time of this report 
(January, 1917) numbered 42,432. 29 

28 Ford Times, February, 191 7, pp. 309-310. 



CHAPTER XVII * 

THE SUPERVISOR OF LABOR 



i. The need for and the function of the supervisor of 
labor. 

Probably the greatest contribution which "scientific man- 
agement" has made to the art of management is that it has 
called attention to a fact which every one knows, but the 
significance of which is not appreciated, namely, that there 
is a best way of doing everything and that this way is 
learned not by chance but by systematic investigation. 
Standardization based upon systematic investigation may 
be said to be the essence of "scientific management." 

The study of the labor turnover reveals that a definite 
and well planned labor policy is as essential as are standard 
practices in manufacturing operations. The turnover is 
primarily significant as an indication of the serious con- 
sequences which follow haphazard methods of dealing with 
labor. The most important causes of the turnover, faulty 
selection of men, inadequate instruction of new hands, un- 
satisfactory physical conditions of work, unnecessary physi- 
cal strain imposed upon workmen, excessive hours of labor, 
wages too low to arouse the interest and enterprise of work- 
men, lack of opportunity for workers to earn advances in 
wages and position by demonstration of merit, faulty meth- 
ods of discipline and supervision, the general lack of inter- 
est on the part of men in their work, and the failure 
of employers to win the loyalty of workmen, all point to 
failure of managers adequately to study the problems of 
handling labor. A means is needed to provide for the mak- 



THE SUPERVISOR OF LABOR 409 

ing of a close study of the problems of handling men, for 
the determination on the basis of this study of a definite 
labor policy, and for the execution of the policy decided up- 
on. It is to fulfill this need that the position of the super- 
visor of labor or labor manager has been created by a num- 
ber of enterprises. 

It is desirable to concentrate the responsibility for de- 
termining and executing the labor policy of the enterprise 
in the hands of a single man because : 

1. Definite concentration of responsibility for the hand- 
ling of such matters as the rates of wages to be paid, work- 
ing hours, increases in wages and promotions, relief of 
physical strain, amelioration of working conditions, hand- 
ling of grievances, improvement of the methods of fore- 
men, gang bosses, and higher executives in handling men, 
in the hands of one person is necessary to assure that they 
receive adequate attention. If the responsibility is left 
to executives absorbed in the problems of increasing out- 
put and cutting costs, such as the general manager, super- 
intendent, division superintendents, or foremen, these mat- 
ters will certainly be neglected. The interest and attention 
of these men is centered elsewhere. Moreover, it is a pecul- 
iarity of the daily problems of foremen, superintendents 
and managers that they are usually of immediately press- 
ing importance requiring solution at once, for output can- 
not be interrupted or delayed. These immediately pressing 
problems necessarily take precedence with the operating 
officials over the problems of labor policy although the 
problems of labor policy may in the long run be of equal 
or greater importance. 

2. Proper handling of labor matters requires qualities 
of personality and temperament which executives often 
lack. Sound decision in matters of labor policy depend 
to a great degree upon exceptional insight into human na- 
ture, sympathy and patience with men. There is need for 



410 THE TURNOVER OF FACTORY LABOR 

a man exceptionally endowed with these qualities who shall 
decide fundamental questions of labor policy, and who 
shall train minor executives in the proper methods of 
handling men, assist them to overcome their natural defi- 
ciencies, and, by acting as a court of appeal for aggrieved 
workmen, correct the mistakes made by the executives less 
skilled in dealing with men. 

3. The work of foremen, superintendents and managers 
imposes a discipline upon them and gives a bent to their 
temperaments which tends to unfit them for dealing with 
matters of labor policy. The work of these executives is 
largely to energize others, to get results quickly and in large 
quantities. The emphasis in their work is largely on speed 
and they become experts in producing speed. As we have 
seen, however, an important need in handling men is pa- 
tience, for in dealing with human nature one must abide 
one's time until a favorable moment for action comes and 
one must be willing to wait for one's policies to show re- 
sults, for progress in such matters as changing men's opin- 
ions or attitudes, winning their confidence or cooperation, 
is slow and results do not materialize immediately. Men 
who have been trained in a school of quick action and 
quick results are likely to be too precipitate and too im- 
patient to be good managers of affairs in which patience is 
such an important factor. 

4. Sound decisions in regard to labor matters depend 
not merely upon sound intuition, but also upon specialized 
knowledge, which only a specialist has the time to acquire. 
Handling of labor is a deep and complicated subject and 
specialized study of it is necessary to fit one to decide the 
numerous problems which arise in connection with it. The 
labor policy must be planned by experts just as much as 
the machinery and manufacturing processes must be 
planned by experts. The prevalent idea that ability to 
handle men is merely a natural faculty, or the result solely 



THE SUPERVISOR OF LABOR 411 

of character and temperament, is only half true. How to 
select men, how to train men, how to pay men, what policy 
shall be followed with respect to wage increases and with 
respect to promotion, what means shall be used to improve 
the handling of men by minor executives, how may griev- 
ances be disposed of with least friction, what welfare work 
would be desirable and how it should be conducted, are 
questions the proper decisions of which require detailed and 
specialized knowledge. 

The decision of general questions of labor policy demands 
also detailed and exact knowledge of the point of view of 
the workmen. Mere knowledge of human nature in general 
is insufficient. A good understanding is required of what 
is in the minds of the workers, of how things appear to 
them and why, of their hopes and ideals, their fears and pre- 
judices, and of the reasons which lie behind them. Fore- 
men, superintendents and managers are woefully ignorant 
of the contents of the mind of the workers despite the fact 
that many of them are former workmen. 

5. Conflicts are bound to arise between the immediate 
interests of the production and the sales departments and 
the interests of the workers. Due regard to the interests 
of labor may require a temporary sacrifice of output. It 
may be profitable to the firm to make changes in the 
methods of doing work or in the plant which temporarily 
interfere with production and which discommode certain 
departments but which economize labor or which tend to im- 
prove relations between the company and its help. If the 
decision of these matters is left to the production or sales 
departments the interest of the company in the well being 
of its help will not receive due consideration. The inter- 
ferences with customary methods of production or of mar- 
keting looms large in the eyes of the officials of the pro- 
duction and selling departments and the advantage to be 
gained from the standpoint of labor appear unimportant. 



412 THE TURNOVER OF FACTORY LABOR 

Often the production or sales officials are unable to see that 
the expected advantages will accrue at all. In order to 
assure that the importance of the human factor shall not 
be underestimated in the determination of policies some 
official of standing is needed who is willing and able to 
act as a champion of labor when conflicts occur between the 
interests of labor and the interests of some particular de- 
partment or official. 1 

6. The various special sub-departments dealing with la- 
bor, such as the employment, the welfare and service, the 
instruction and the medical departments should be united 
under the direction of a specialist in labor matters, because : 

(a) By so doing, it is possible to put an exceptionally 
capable man of great executive ability in charge who will 
determine the fundamental policies of each sub-department 
and who because of his greater capability and vision will 
provide a wiser and more far-sighted policy than the less 

1 It is not of course to be expected that the supervisor of labor, 
who is paid by the company, will stand for the interests of the 
laborers as against the interests of the company, and this is not 
implied in the above statement. There are many cases, however, 
in which the long time interests of the enterprise can be promoted 
by conferring certain benefits on labor which may temporarily inter- 
fere with production. Such might be the case in the alteration of 
the plant to provide more light, air, etc., and better working condi- 
tions for workmen. Making the alterations may temporarily im- 
pede production. In such cases, if the decision were left solely 
to executives responsible for production, the decision might not 
correspond with the real interests of the firm. Another case of 
possible conflict might arise if, in order to diminish overtime in 
rush season, restrictions were imposed upon the time within which 
deliveries could be promised, a practice followed by a Cleveland 
firm mentioned in Ch. XIII. The sales department naturally would 
strenuously oppose such limitation. The true interests of the firm, 
however, require that the interests not merely of the sales depart- 
ment, but also of the laborers be taken into consideration. Some one 
is necessary to represent the interest of the firm in the good will 
of its working force when this question is decided. 



THE SUPERVISOR OF LABOR 413 

capable men who are in immediate charge of the particular 
sub-departments. 

(b) In order that the financial and other interests of the 
respective sub-departments dealing with labor shall receive 
adequate consideration, these sub-departments should have 
their interests championed by an executive of greater ability 
and prestige than the heads of these respective sub-depart- 
ments. 

(c) The work of the sub-departments dealing with labor 
offers many opportunities for cooperation. Central direc- 
tion facilitates coordination of their activities. 

2. The development of and duties of the position of 
supervisor of labor. 

Two principal causes have led to the development of the 
position of supervisor of labor, and as a result of these 
two causes we have two classes of supervisors of labor, the 
products respectively of each of the two causes. 

The first cause is the need more and more felt, as better- 
ment work has become more comprehensive and elaborate, 
of some one to supervise and to coordinate the various 
betterment activities such as welfare work, safety work, 
medical supervision of employees, and educational work. 
It has been felt that betterment work should be developed 
along the lines of some well worked out plan and that the 
various types of betterment workers, the welfare secretaries, 
service workers, safety experts, physicians, visiting nurses, 
etc., should be subject to closer supervision than the general 
manager is able to give them. To the general supervision 
of betterment work is sometimes added control of hiring. 

The supervisor of labor in this stage is little more than a 
more important betterment worker, a general director and 
general supervisor of betterment activities. He has not yet 
been assimilated into the operating organization, he has little 
authority to determine the labor policy of the company. He 
deals largely with matters outside the regular routine of 



414 THE TURNOVER OF FACTORY LABOR 

conducting operations, he has to do primarily with the men 
while off the job rather than on the job, with such matters 
as the development of recreation among the men, the con- 
ducting of the plant restaurant, provision for sick and 
disabled workers and their families, aid to workers in legal 
trouble, improvement of the home conditions of workers, 
promotion of thrift, Americanization of immigrants, provid- 
ing educational courses, instead of with such matters as 
wages, hours, discharge, promotions, transfers, grievances, 
methods of foremen in handling men. The supervisor of 
labor in this stage is primarily an "uplift" worker rather 
than an operating official and is separated from operating 
officials by more or less of a gulf. 

The second cause for the creation of the position of 
supervisor of labor is the better realization of the impor- 
tance and complicated nature of the problem of handling 
men. When betterment work to improve the condition of 
workers was commenced, the systematic study of the prob- 
lems of management had made little headway and little 
attention had been paid to the intensive development of the 
efficiency of organizations. Managers were unaware of 
how wasteful and fundamentally defective were their 
methods of handling labor. The prevailing opinion con- 
cerning the cause of the discontent of workers was that 
this discontent was rather superficial and could be remedied 
by rather superficial means. Welfare work was thought a 
sufficient remedy. Under these circumstances it is easily 
seen why the need for a well planned and well coordinated 
labor policy for the entire plant was not appreciated. 

As managers observed the experience with the superficial 
forms of welfare work which marked the beginning of the 
efforts to improve relations between employers and their 
men and as they made more and more systematic study of 
the means of developing the efficiency of their organizations, 
they became aware of the deep-seated nature of labors dis- 



THE SUPERVISOR OF LABOR 415 

content, of the fundamentally defective character of their 
methods of handling men and of the superficial and inade- 
quate character of their devices for improving their rela- 
tions with their men. They perceived that the problem 
of handling men was deeper and more complicated than 
they had suspected, and that a specialist is needed who 
should have charge of all matters relating to labor and who 
should have the responsibility of working out a labor policy 
for the plant. The perception of this need has led to the 
second stage in the development of the supervisor of labor 
— the creation of supervisors of labor of the second type, of 
the business rather than the uplift type. Instead of being 
primarily a general director of betterment work the second 
type of supervisor of labor has real authority in determin- 
ing and executing the labor policy of the plant. He deals 
with the men primarily while on the job rather than when 
of! it. He determines wage rates, passes on discharges, 
transfers, and promotions, settles grievances, supervises the 
methods of foremen in handling men as well as supervises 
betterment work. He is an integral part of the operating 
organization. 

Supervisors of labor who are merely general directors of 
betterment work are more numerous than supervisors who 
are real directors of managerial policy towards labor, for 
the process of breaking down the independent authority of 
the foremen over labor is a slow one. The tendency, how- 
ever, is for supervisors of narrow authority to acquire 
broad powers. This occurs in several ways. 

The labor supervisor often encourages workers to bring 
him their complaints and troubles. He may have no au- 
thority to adjust them, but on behalf of the worker he will 
take up with the proper person those complaints which he 
considers justified, and endeavor to effect an adjustment. 
Workmen may be notified of the willingness of the labor 
supervisor to hear complaints by a notice in the book of 



416 THE TURNOVER OF FACTORY LABOR 

information and instruction. The book of information for 
employees of a shoe factory, for example, contains the 
following notice: 

"GRIEVANCES. If for any cause employees are not 
satisfied with conditions as they find them, they will con- 
fer a favor on us by taking up the matter with Mr. 

(the labor supervisor) in his office after 3:15 p.m." 

If the supervisor of labor supervises the employment 
department he learns the reason why men resign. The 
complaints which men bring to the labor supervisor and 
their reasons for resigning reveal faults in the methods of 
foremen in handling men. The labor supervisor often 
seeks to prevent recurrence of the grievances by pointing 
out to the foreman the consequences of his actions and 
by calling his attention to the loss to the company and 
to the foreman himself from men leaving. 

Control of the employment department especially is likely 
to be the basis for an expansion in the authority of the 
supervisor of labor. A number of employment managers 
'have developed into general labor administrators with 
broad powers. 

If a policy is followed of filling vacancies whenever pos- 
sible by promotion, control of the employment department 
means that promotions are in a large measure determined 
under the direction of the supervisor of labor and in the 
more important cases subject to his specific approval. 
Whether discharged employees shall be given a chance in 
another department depends upon the labor supervisor's ap- 
proval. 

Because the employment department is best informed 
concerning wage rates in the market and because it is first 
to feel the effects of a scale too low to attract and hold 
labor, the supervisor of labor who manages the employment 
department is likely to be consulted in regard to wage ad- 
vances and is likely to take the initiative in making recom- 



THE SUPERVISOR OF LABOR 417 

mendations for wage advances necessary to keep pace with 
the market. 

The influence of the supervisor of labor is particularly 
likely to expand and become strong in plants which are 
growing rapidly and in which men are being made foremen 
whom the supervisor of labor befriended as ordinary work- 
men, aiding them in adjusting grievances, procuring trans- 
fer or promotion, or assisting them through the company's 
welfare work. 

When they first become foremen these men often seek 
the advice of the labor supervisor in handling men. They 
are likely to feel less reticent about consulting the super- 
visor of labor in such matters than they do about consult- 
ing other foremen. On account of their regard for him, 
their confidence in his judgment and willingness to listen 
to his advice, he is able materially to influence their methods 
of handling men. Later when matters such as employees' 
grievances, transfers, promotions, etc., arise, the influence 
of the supervisor of labor is especially strong with these 
foremen. 

In such ways as these, competent supervisors of labor of 
limited authority, by gradually broadening their influence, 
prepare the way for the formal concentration in their 
hands of the authority to determine and execute the labor 
policy of the plant. 

The following summaries of the functions of the super- 
visor of labor or equivalent official in several plants illus- 
trate the tendency to concentrate more and more of the 
authority over labor matters in a single person. 

The Employment Department of the Curtis Publishing 
Company is divided into four main divisions, each of which 
is in the charge of its manager: employment division, in- 
struction division, medical division, and welfare division. 
The entire department is in the charge of an employment 



418 THE TURNOVER OF FACTORY LABOR 

manager, who reports directly to the general manager of the 
company. 2 

The labor department of a manufacturer of rubber goods 
is vested with the following functions : ( I ) general super- 
vision of working conditions, (2) employment, (3) labor 
adjustments, (4) lockers, showers, (5) legal advice, (6) 
plant safety, (7) factory messenger service, (8) accident 
prevention, (9) accident compensation, (10) health super- 
vision, (11) emergency hospital, (12) library, (13) fac- 
tory newspaper, (14) educational work, (15) lunchroom 
service, (16) suggestion system, (17) supervision of hous- 
ing, (18) insurance plan for employees, (19) retirement 
plan for employees, (20) service pin awards. The manager 
of the labor department reports directly to the factory 
manager. 

In a plant manufacturing electrical apparatus, labor 
matters have been largely centralized in the hands of an 
assistant general superintendent. Thie manager of the 
employment department reports to him, the fixing of bonus 
limits is under his supervision, he is chairman of the griev- 
ance committee which hears grievances, but which, how- 
ever, has only power to recommend adjustments. 

In an eastern printing and bindery establishment, the 
employment and welfare work is centralized under single 
authority. This firm has taken a step which few others 
have taken. It has taken disciplinary authority from the 
hands of the minor executives (who in this case are more 
equivalent to gang bosses in charge of small groups than to 
foremen in charge of departments) and placed it in charge 

2 Business Welfare as Practiced by the Curtis Publishing Com- 
pany, privately printed by Curtis Publishing Co., 1916; R. C. 
Clothier, "The Employment Work of the Curtis Publishing Com- 
pany," Annals of the American Academy of Political and Social 
Science, v. LXV, May, 1916, on "Personnel and Employment Prob- 
lems," pp. 94, 95. 



THE SUPERVISOR OF LABOR 419 

of the labor supervisor. The group supervisors may merely 
recommend discipline. 

In a western metal working plant, the betterment depart- 
ment has charge of the employment department and the 
efficiency work, sets the standards for all production, the 
time and method of work. The department has under- 
taken the responsibility of educating foremen in methods 
of handling men. The head of this department does not 
believe that the disciplinary authority should be taken from 
foremen. 

As the importance of the human element and the intri- 
cate nature of the problems of handling men become more 
and more thoroughly appreciated, the need of a well planned 
labor policy and of some one to plan and administer it 
will be more keenly felt. We may expect most large plants 
to create the position of supervisor of labor and eventually 
to subject to his authority all questions of handling men. 
The supervisor of labor will possess either the right to 
make final decisions in such matters himself, or the duty 
to investigate and to recommend decisions to the general 
manager. Labor supervisors of the future may be expected 
to possess the following principal duties : 

1. Investigation of the proper wage rates and of the 
most desirable form of wage payment (such as day work, 
piece work, or the various forms of premium and bonus 
systems) for each job in the plant, and recommendations 
of modes and rates of payment to those authorized to de- 
cide these matters. This includes the special modes and 
rates of payment for inexperienced workers and the methods 
of advancing the pay of new hands as they acquire skill. 

2. Supervision of physical conditions of work and recom- 
mendation of changes in plant, equipment and working 
processes, to increase the comfort of workers and to reduce 
the physical and nervous strain of the work. As changes 
in plant equipment and methods all involve the interests of 



420 THE TURNOVER OF FACTORY LABOR 

the production department, the labor department cannot 
order changes in equipment and plant but can simply 
recommend changes. 

3. Representation of the interests of the workers in so 
far as they are interests of the firm, when the interests 
of the workers conflict with the immediate interests of 
certain departments. 

4. Because the supervisor of labor has more intimate 
knowledge of the workers than any other high official and 
because, presumably at least, he is a better judge of human 
nature than other officials, he is the logical person to select 
foremen and gang bosses. In this, of course, he would 
have the advice of the employment and instructional de- 
partments, and in the case of foremen, of the retiring fore- 
man, and in the case of gang bosses, of the foreman. 

5. The training of men to become foremen and gang 
bosses should be under the direction of the supervisor of 
labor. 

6. Responsibility for the methods of foremen and gang 
bosses in handling men. It should be the duty of the super- 
visor of labor to recommend to the general manager the 
discharge or demotion or other discipline of foremen and 
gang bosses who are incompetent or who fail to show 
proper spirit in dealing with their men. Foremen and gang 
bosses should be deprived of disciplinary authority. They 
should be permitted only to recommend disciplinary action. 
Authority to discipline workers should rest with the super- 
visor of labor alone, subject to appeal to the general man- 
ager. 

7. The supervisor of labor should act as a court of ap- 
peal for all grievances. In regard to grievances involving 
questions of labor policy only, the decision of the labor 
supervisor should be subject only to appeal to the general 
manager. When adjustment of the complaint involves the 
interests of other departments, such as the production de- 



THE SUPERVISOR OF LABOR 421 

partment, the supervisor of labor can only recommend 
action. 

8. Supervision of the employment office. 

9. The medical department should be responsible to the 
supervisor of labor. 

10. Supervision of the training of employees. 

11. Planning and supervision of the work of the welfare 
department. 

12. Supervision of suggestion system. 

13. Supervision of "safety first" campaign. 

14. Supervision of house organ, when the organ is in- 
tended for employees of the firm rather than for customers. 

15. Supervision of the handling of office boys and mes- 
sengers. Because of the great possibilities of developing 
valuable material for the organization from office and mes- 
senger boys, particular attention should be paid to them. 
They should be organized into a separate office and mes- 
senger boy department in charge of some one who under- 
stands boys and who reports to the supervisor of labor. 
Special instruction on the company's time should be given 
to the boys. 

3. The relation of the supervisor of labor to the con- 
flict between capital and labor. 

In the foregoing discussion of causes of and remedies for 
the labor turnover it has been argued that the most im- 
portant cause of the turnover is lack of appreciation of the 
importance of the problems presented by the human factor 
in production, resulting in the failure to study the problems 
of the handling of men and, therefore, in the use of ineffi- 
cient methods of handling men. The fundamental remedy 
for the turnover, therefore, consists in the systematic study 
of the problems connected with the employment and 
handling of men and in the formulation and application on 
the basis of such study of a definite labor policy — in other 
words in the pursuit of intelligently conceived methods of 



422 THE TURNOVER OF FACTORY LABOR 

handling men in place of haphazard, uncoordinated methods 
unworthy of the name of policy. The formulation and 
application of such a labor policy requires the services of 
a specialist in the handling of men — the supervisor of labor 
or labor manager. The question naturally arises, What is 
likely to be the effect upon the relations between capital 
and labor of the direction of the handling of men by expert 
labor administration? 

An enlightened labor policy in a single plant by giving 
the workmen better wages, better working conditions, and 
better treatment than they can obtain elsewhere, may 
eliminate the conflict between workers and management in 
that particular plant. But even the most enlightened labor 
policy cannot eliminate the conflict between labor and 
capital generally because it cannot eradicate the difference 
of interest which exists in the very nature of things between 
capital and labor due to the fact that capital is a buyer 
and labor a seller. 

Although expert labor administrators cannot eradi- 
cate the difference of interest which is the basis of the 
conflict between capital and labor, they may, by eliminating 
unnecessary causes of conflict, materially lessen its in- 
tensity. The causes of conflict which exist because of 
employers' ignorance of what their true interest in hand- 
ling men is, expert administrators will largely eradicate. 
They will mitigate fatiguing and disagreeable features of 
work, improve working conditions, raise wages which are 
so low as to discourage initiative and enterprise on the 
part of workmen, shorten the working day when in excess 
of the productive optimum, reward workers on the basis 
of merit, open up roads of advancement to workers. Where 
profitable they will eliminate friction due to tactless and 
inconsiderate methods of handling workmen, although 
there is no assurance that considerate treatment of workers 
is always profitable. The conditions which are thus im- 



THE SUPERVISOR OF LABOR 423 

proved by an enlightened labor policy are the most extreme 
ones, precisely the conditions which are most likely to give 
rise to antagonism and bitterness not merely because of the 
harshness and severity of the conditions themselves but 
also because they indicate such a palpable callousness and 
indifference on the part of the management toward its 
workers. In studying the psychology of the relations be- 
tween workers and management this fact should be re- 
membered, that it is not only the physical and nervous pain 
caused by onerous conditions which causes resentment 
among the workers but it is the indifference of the man- 
agement to the effects of the onerous conditions which is 
especially irritating. 

The expert labor administrator will mitigate the antagon- 
ism between capital and labor due to mere lack of contact 
and acquaintance between the management and the workers 
and due to ignorance or neglect on the part of the manage- 
ment of the sensibilities, prejudices and ideals of the 
workers because if he is a real expert, his policies are based 
upon a thorough study of the ideals, prejudices, etc., of the 
workers. 3 

3 In connection with the problem of bringing about intimate con- 
tact between the operating organization and labor, it should be 
noted that a supervisor of labor who has a real authority in the 
determination of labor policy is the only official who is in a position 
to bring about a satisfactory contact. The welfare manager, 
although possessing the time necessary to become acquainted with 
the workers and to learn their point of view, is not an operating 
official and has little influence over operating methods. The knowl- 
edge of the workers' point of view which the welfare manager 
possesses, therefore, does little to produce an enlightened labor 
policy. Substantially the same objection applies in a lesser degree 
to the employment manager. It was pointed out above that an 
employment manager of initiative and of persuasive ability may 
exert some influence upon the methods of handling men, but his 
influence is limited by the fact that he has no authority to decide 
matters of labor policy. A supervisor of labor who is only a 



424 THE TURNOVER OF FACTORY LABOR 

More intimate acquaintance with workers and greater 
knowledge of how to handle men lead to better apprecia- 
tion on the part of the management of the value of good 
will of the workmen. It may or may not be profitable for 
the management to incur substantial expenditures to win 
the good will of its workers, but in so far as it is profitable 
an intelligent study of the labor problem will inform the 
labor supervisor and will lead to the cultivation of the 
good will of workers. 

To say that an enlightened labor policy will eliminate con- 
flict between the men and management in so far as this is 
profitable, says nothing concerning in how far the elimina- 
tion of causes of conflict is profitable. 

An enlightened labor policy is not necessarily a liberal 
labor policy. Intelligent study of handling labor may 
reveal that lower labor costs can be obtained by treating 
the men well and by making loyalty and good will the foun- 
dations of efficiency. But such study may also show it 
cheaper largely to disregard the men's attitude toward their 
work and toward the management, to accept the costs of 
the large turnover which inevitably follows the failure to 
treat labor liberally, and to rely upon low wages and "drive" 
methods to produce low labor costs. The effect upon the 
relations of the men and management of the determination 
and direction of labor policy by an expert depends in part, 
therefore, upon whether the study of the handling of men 
indicates that a liberal or a "drive" policy is the more 
profitable. 

general supervisor of betterment work and who possesses little 
or no authority in the actual handling of labor is unable to bring 
about a satisfactory contact for the same reasons, because he lacks 
the means to embody his understanding of labor into the labor 
policy of the company. Only when the determination of the labor 
policy is placed in the hands of a specialist in labor matters will 
the problem of adequate contact between the men and management 
be solved. 



THE SUPERVISOR OF LABOR 425 

In the matter of providing good physical conditions of 
work, experience seems to have demonstrated that the 
expenditure necessary to provide good physical conditions 
usually is more than comnensated by the greater efficiency 
of the force. 

Time and motion study has rendered the piece rate cut- 
ting policy far less profitable than formerly, and probably 
has rendered it less profitable than a merit system of wage 
payment. 4 

Proof is lacking, nowever, that other features of a liberal 
labor policy, such as high wages, short hours, liberality in 

4 The piece rate cutting policy was profitable before the advent 
of time and motion study because in the absence of time and mo- 
tion study it was difficult to set a rate which was proper in view 
of the amount of work which a worker of average ability could 
turn out. The reason was twofold. In the first place the amount 
of work which a worker can turn out depends upon the method 
which he uses. In the absence of motion study no standard 
method of doing the work existed. The rate which was set was 
based on the method of doing the work which the worker per- 
forming the test by chance happened to use. In the second place, 
in the absence of the close observation of time study the manage- 
ment could not determine whether the worker was working at the 
maximum speed he easily could maintain or much below it. The 
result was that the rate set upon the job in the first instance was 
often substantially higher than necessary to produce a reasonable 
compensation for an average good man working at a fair rate 
of speed. The cut which could be made in the rates without forc- 
ing them below the amount necessary to produce the supply price 
for the type of labor involved was so great that the rate cutting 
policy was extremely profitable. This has been especially so when 
the workmen purposely have worked slowly in the trials for set- 
ting rates in order to bring about the establishment of a high rate. 

Time and motion study greatly reduce the inducement to cut 
rates, because they render it possible to set a rate in the first 
instance which corresponds with a fair degree of accuracy to the 
speed which a normal worker can maintain. The more accurate 
time and motion study become, the less becomes the profit in rate 
cutting. 



426 THE TURNOVER OF FACTORY LABOR 

dealing with grievances, and liberal and considerate attitude 
toward labor in general are profitable from the narrow, 
short time business point of view. The fact that liberalism 
seems to have paid in individual instances is no proof that 
it would be profitable if adopted simultaneously by a large 
number of employers. A liberal policy may be profitable 
in dealing with some classes of workers but unprofitable in 
dealing with other classes. Great doubt exists, for exam- 
ple, in how far the application of a liberal policy is profit- 
able in managing unskilled or slightly skilled labor. When 
the boundary is reached beyond which a liberal labor policy 
no longer pays from the standpoint of the individual em- 
ployer, broader considerations alone remain to support the 
pursuit of a liberal policy. 5 The broader considerations 
which may cause the pursuit of a liberal policy toward 
labor beyond the dictates of the mere business advantage 
of the individual employer are the employer's class interests 
and the general social welfare. 

The pursuit of a niggardly and drastic policy toward 
labor may profit a few employers but be unprofitable if 
practiced by employers in general. The reason for this is 
that the costs of the niggardly and drastic policy are not 
felt in full by a single employer when others do not prac- 
tice it, but the employing class as a whole cannot escape 
the costs of the policy when it is generally pursued. A 
single employer who overdrives his workers, reducing the 

6 The determination of whether a liberal policy is advantageous 
or disadvantageous, even from the narrow business standpoint, is of 
course largely a matter of judgment rather than of cost accounting, 
since the precise effects upon costs of many expenditures cannot 
be traced. The liberal inclinations of the manager, his desire to 
see a prosperous and contented working force and to err on the 
side of liberality rather than on the side of niggardliness, will be 
the deciding factor in determining the decision long before the 
point is reached beyond which social considerations alone justify 
the pursuit of the liberal policy. 



THE SUPERVISOR OF LABOR 427 

length of their industrial life, can replace them easily. The 
overdriving of workers in general, however, decreasing the 
amount produced by each during his industrial life, is 
equivalent to a decrease in the general supply of labor and 
detrimental to capital precisely as is a decrease in the 
number of workers. 

The pursuit of a liberal labor policy, by increasing the 
average efficiency of labor during its industrial life and 
hence increasing the labor power of society, benefits cap- 
ital just as does an increase in the number of laborers. 
The profitableness of the policy, however, depends upon 
its pursuit by employers in general. To a single employer 
or a few employers, the policy may be unprofitable because 
the advantages accrue to employers in general rather than 
only to those particular employers who incurred the cost of 
the policy. 

The discontent and animosity produced in the laboring 
class by the pursuit of a "drive" policy by a few employers 
may be of little significance because the number of workers 
affected is small. When, however, a "drive" policy is prac- 
ticed by employers in general, affecting the entire working 
class, widespread and dangerous animosity may be aroused 
against employers. Although single employers may find a 
"drive" policy practical, the interests of employers as a 
class may demand the pursuit of a liberal policy. 

The pressing need for a broadly conceived, statesmanlike 
policy toward labor on the part of employers from the 
social standpoint is, of course, easily demonstrated. The 
social advantage from the improved physical and economic 
condition of the workers is self-evident. Some other 
social advantages are: 

1. The pursuit of a "drive" instead of a liberal policy 
engenders animosity and antagonism among the workers 
which enormously complicate the problem of working out 
a satisfactory program of social reform. Why a resentful 



428 THE TURNOVER OF FACTORY LABOR 

state of mind complicates social reform is almost too self- 
evident to require explanation. In the first place, anger and 
hatred concentrate attention upon the destructive rather 
than the constructive aspects of social reform. Interest 
is centered upon destroying or inflicting injury on the 
source of the injustice rather than upon working out ade- 
quate substitutes for the institutions and social arrange- 
ments which it is proposed to destroy. This is well illus- 
trated by radical movements of to-day of which socialism 
is the most conspicuous example. The exponents of social- 
ism are admirably definite, specific and vivid in their indict- 
ment of the present economic system. They offer a solu- 
tion which is particularly calculated to appeal to those 
who suffer from the imperfections of the present order 
because it apparently deals a death blow to the prosperity 
of those who have prospered under the present order and 
who seem to the sufferers (and not unnaturally) to be the 
cause or at least the beneficiaries of their misfortunes. 
When it comes to the details of the process by which the 
socialistic state is to be created, the nature of its organiza- 
tion, the methods of its operation, and especially what 
fresh problems of major importance, if any, it is likely to 
bring with it and how they will be solved, the praiseworthy 
specificness shown by the socialists in their destructive 
criticism ceases and their statements become vague, general, 
contradictory or statements cease to be forthcoming. The 
reason why large numbers of people can be brought to 
commit themselves so assuredly to the support of a drastic 
remedy concerning which they know almost nothing with- 
out exhibiting curiosity for a detailed exposition of how 
the remedy will work, is because they are so carried away 
by their resentment against existing injustices, that they 
think only of wreaking vengeance upon the causes of in- 
justice and do not consider the consequences of their pro- 
gram. They are in a destructive rather than a construe- 



THE SUPERVISOR OF LABOR 429 

tive frame of mind and in this mood are necessarily in- 
capable of giving proper attention to the practicability of 
the proposed remedies. The tendency for men to be car- 
ried away by their destructive impulses to the neglect of 
the constructive problems of social reform is more or less 
characteristic of the social reform movement in general. 
Liberality by capital in dealing with labor is needed in 
order that by the mitigation of the suffering due to the im- 
perfections in the present order, the heat of men's resent- 
ment may be lessened and they may acquire a mood more 
conducive to the rational consideration of constructive prob- 
lems of reform. 

A second respect in which animosity hinders the attain- 
ment of sensible solutions of social problems is that it 
encourages precipitate action. The angry man wishes im- 
mediate action. He opposes the delay required by investi- 
gation and deliberation. Quite apart from the fact that 
anger directs the attention into destructive rather than con- 
structive channels, it is inimical to the rational solution of 
social problems because it encourages ill considered, hasty 
action. 

2. The pursuit of a drastic "drive" policy by capital, by 
intensifying the class consciousness of labor and capital 
and their absorption in narrow class aims and by arousing 
animosity and prejudice between them, tends to cause them 
to fail to appreciate the extent to which their interests are 
identical, the extent to which industrial prosperity is de- 
pendent upon labor, and the extent to which it is 
dependent upon capital. In the prevalent state of class 
warfare in which each class is primarily concerned 
with protecting itself against the other, the idea that their 
interests are in a large measure identical and that mutual 
advantage can be gained by cooperation becomes almost 
inconceivable. 

3. The attainment of the greatest social welfare requires 



430 THE TURNOVER OF FACTORY LABOR 

the development by members of each class of broad con- 
ceptions of their responsibility for the general welfare. 
Social reform cannot be adequately realized by the efforts 
of various classes to obtain the satisfaction of narrowly con- 
ceived class rights but by the development of mores which 
impose upon all classes broader responsibilities for the gen- 
eral social welfare. In the constructive phase of the social 
revolution into which we are now entering and in which we 
are endeavoring to reorganize our shattered institutions and 
to coordinate old and new, the development of broad con- 
ceptions of duties and of the necessity for cooperation 
among various classes is of special importance. Particu- 
larly is it important to the progress of social welfare that 
labor be induced to feel a large measure of responsibility 
for the maintenance and promotion of industrial efficiency, 
that it be induced to cooperate liberally to further the in- 
crease in production. 

Willingness to assume duties depends upon, the recogni- 
tion accorded one's rights. Men are in no mood to give 
consideration to their duties until they feel that their rights 
have received fairly liberal recognition. As long as they 
are conscious of gross injustice their interest is concen- 
trated on the means of obtaining redress. Particularly out 
of the question is it that they should feel a sense of obliga- 
tion toward the very persons who are responsible for the 
supposed injustice. If capital pursues a narrow, selfish 
policy toward labor, treating labor simply as an instrument 
of production rather than as a partner in the business, can 
labor be expected to feel a responsibility for the mainte- 
nance of the prosperity of the very industries from which 
its exploiters reap their profits? 

4. Labor acquires its notions of the ethics of the indus- 
trial struggle largely from the actions of capital. If capital, 
unconsciously acting as an instructor to labor, exalts 
wanton selfishness, teaches labor that the industrial strug- 



THE SUPERVISOR OF LABOR 431 

gle is a ruthless and relentless pressing of every advantage 
to the utmost limit without regard for others except in so 
far as enlightened self-interest demands it, labor will model 
its methods more or less after the same pattern. If, as 
seems not unlikely, labor becomes the dominant power in 
industry, it will then exercise its power with the same ruth- 
less indifference to the general welfare which it has been 
taught by capital to practice. The practices of unions 
which have attained decided power indicate that labor may 
be expected to pursue as narrow and selfish a policy as 
capital. If the sense of social responsibility of both labor 
and capital is to be raised, it remains for capital, which 
is now generally dominant and which largely sets the stand- 
ards for labor, to take the first step by assuming a broad 
social responsibility in its policy toward labor. 

5. The effects of the pursuit of narrow, selfish policies 
and the use of oppressive, ruthless methods by capital and 
labor are not confined to the relations of capital and labor 
between themselves. The pursuit of these policies and the 
use of these methods tend to lower social ideals in general 
for they lower the "plane of general sentiment out of which 
imperatives and obligations arise." 6 Altruism, sympathy, 
tolerance, sense of duty, faith in human nature, out of 
which high social ideals spring, cannot flourish in a society 
split into two hostile parts and engaged in a bitter struggle. 
A bitter cynicism, instead, is likely to be the spirit of such 
a society. A liberal labor policy is needed in order that 
the inherent difference of interest between labor and capital 
may cease to give rise to a bitter struggle which poisons the 
"social consciousness" with hatred, envy and suspicion and 
impedes the development of social ideals. 

Will the expert labor manager in formulating the labor 
policy be more susceptible to the broader class and social 
6 Ross, Social Control, p. 416. 



432 THE TURNOVER OF FACTORY LABOR 

considerations than the typical president or general 
manager ? 

It seems certain that expert labor administrators will be 
more strongly influenced by social and class considerations 
in formulating their labor policies than non-specialist execu- 
tives. In the first place the specialist is less influenced than 
the non-specialist by traditional assumptions and prejudices 
relating to the handling of men. The presidents and man- 
agers of the old school have dire visions of the discontent 
and demoralization which will follow the slightest mani- 
festations of liberality to labor. Concessions will be con- 
sidered as signs of weakness, labor will become restive and 
arrogant and will make extreme demands. It will also 
become lazy, dissipated and generally less efficient. Expert 
labor administrators are unlikely to be deterred by such 
illusions from adopting a liberal policy. 

In the second place one of the principal reasons for em- 
ployers' neglect of class and social considerations is their 
inadequate knowledge of what these considerations are or 
failure due to absorption in other matters to appreciate their 
importance. The average non-specialist executive, for ex- 
ample, has a sadly inadequate knowledge of the common 
class interests of employers in matters of labor policy. It is 
especially difficult for managers of the traditional type to 
see their points of common interest in matters of labor 
policy because the common interest of employers often con- 
flicts with traditional policies of handling men, such as 
"drive" methods of management to which managers of the 
old school are strongly attached. So firmly attached are 
they to many traditional methods of handling men, that they 
are unable even to see what is their own selfish interest in 
dealing with men, not to mention their class interest or the 
public interest. 

Most employers also have an inadequate knowledge of 
the social importance of the labor problem. Many of them, 



THE SUPERVISOR OF LABOR 433 

it is true, realize that there is a labor problem and that it 
is important, but they lack knowledge and appreciation of 
the importance of numerous specific aspects of the problem. 
How important to society, for example, is the lack of a 
living wage among workers, or what is the social importance 
of sickness among workers, unemployment, poor housing, 
child labor, long hours, or what are the problems connected 
with women in industry? Concerning such matters most 
employers possess very scanty information and possessing 
scanty information are necessarily influenced little by the 
facts in dealing with labor. 7 

The labor administration specialist has a far better knowl- 
edge than non-specialist executives concerning the common 
class interests of employers in labor matters and a better 
appreciation of the importance of such common class inter- 
ests. Because he is primarily a servant of the employing 
class, the labor manager may possess inadequate knowledge 
and appreciation of the social aspects of the labor problem. 
Nevertheless his knowledge of the problem and his appre- 
ciation of its seriousness and its importance in its various 
aspects are much superior to the knowledge and apprecia- 
tion of the all-round executives who give little time to labor 
matters and whose interest is focused elsewhere. 

Even though profit be the chief end of business, business 
men do not subordinate everything to it. Where definite 
knowledge of a public or a class interest exists, business men 
are inclined to make some allowance for it even at the 
sacrifice of some profit. The more definite and complete 

7 In stating that employers' information concerning the labor 
problem is slight compared with the information available, I assert 
nothing which employers are disposed to deny. One has only to 
turn to the speeches' of employers at meetings of their various 
associations in recent years or to books and periodicals on man- 
agement to find in abundance the most frank admissions from 
representative employers that they have neglected the study of the 
labor problem. 



434 THE TURNOVER OF FACTORY LABOR 

their knowledge and appreciation of the public interest, 
the larger are the concessions which they are willing to 
make to it. The supervisor of labor by bringing to the 
enterprise more thorough knowledge and appreciation of 
public interests and of employers' class interests in labor 
matters should exert a liberalizing influence upon the labor 
policy. 

In so far as employers fail of their own initiative to adopt 
a liberal policy toward labor, they are likely to be compelled 
by public opinion. The social value of the liberal recog- 
nition of social responsibilities by both capital and labor 
is so great that in the new mores which are being developed 
to supply the needs created by the social revolution we may 
confidently expect to find broad responsibilities for the in- 
dustrial welfare imposed upon both capital and labor. 8 
The expert labor administrator being more familiar than 
the non-specialist executives with the content and strength 
of public opinion on industrial relations is likely to be more 
responsive to such opinion. 

Of equal importance and closely related to the question of 
in how far the management of labor by specialists will result 
in a liberal labor policy, is the question of what effect will 

8 The part which the new mores in process of development out 
of the chaos of the past century may be expected to play in the 
solution of the problem of the relations between capital and labor, 
is a most interesting and important problem, but one which has 
been neglected by economists. Economists have directed their 
attention primarily to the mechanism by which the adjustments 
might be made between the parties, that is to collective bargaining. 
Yet the mechanism of collective bargaining is but a superficial 
aspect of the problem. The relations between capital and labor 
are fundamentally determined by the mores. The relations which 
will prevail in the future will be determined by the new mores in 
process of creation. In order to gain some idea of the nature of 
the relations in the future we must predict what the new mores 
on the relations of capital and labor to each other and to society 
will be. 



THE SUPERVISOR OF LABOR 435 

the handling of labor by experts exert upon the relations of 
employers to the labor movement. 

The traditional policy of employers toward labor organi- 
zations has been one of coercion. They have sought to pre- 
vent the spread of organization by refusing to hire union 
men and by discharging men with unionistic tendencies and, 
when organizations have arisen, have attempted to under- 
mine them by discharging their leaders and building up a 
group of non-union men within their force, and then at the 
first favorable opportunity have sought to crush the unions 
by a lockout or by precipitating a strike. 

There is no reason to expect that the administration of 
labor by experts will result, in the near future at least, in 
substantial modification of the fundamental attitude of em- 
ployers toward unions. Under the expert direction of labor 
administrators, however, the old methods of fighting unions 
will undoubtedly be more efficiently and more judiciously 
applied and new methods will be developed to supplement 
the old. 

The traditional coercive policy will be pursued much 
more efficiently as a result of closer attention to the methods 
of handling men. The modern employment office with its 
individual records of all workers and the rapid spread of 
the practice of consulting previous employers of all hired 
are formidable black-listing possibilities. Particularly 
formidable in its possibilities is the policy, which is rapidly 
spreading, of filling all vacancies except positions of the 
lowest rank whenever possible from within the force. This 
policy, should it become general, will greatly increase the 
seriousness to the worker of the loss of his job, for it will 
substantially enhance the difficulty to experienced workers 
of finding new work of the same grade as they previously 
performed and yielding corresponding wages. Employers 
so far have not fully appreciated as a means of combating 
unionism the tremendous possibilities of the plan of organ- 



436 THE TURNOVER OF FACTORY LABOR 

izing the work in their plant into minutely subdivided jobs 
each of which can be easily learned, of organizing these jobs 
into systematic lines of promotion, of training each man for 
the job ahead of him in advance, and then of filling va- 
cancies by the hiring of men for the lowest positions and 
moving others up. 

The closer supervision of laborers by foremen and gang 
bosses, made possible by relieving the foremen and gang 
bosses of other duties and by decreasing the number of men 
under the control of each, facilitates the detection of agi- 
tators, men of suspicious tendencies, and the chronically 
dissatisfied who are likely to instigate a spirit of revolt in 
the force. The spirit of modern efficiency, which lets the 
effectiveness of the method in getting the desired results 
justify its use, may also lead to a more thorough and effec- 
tive use of espionage to detect agitators. 

A policy may be consciously and systematically pursued 
of weakening the bargaining power of labor. The principal 
methods of carrying out this policy are likely to be : 

1. The taking over more and more by the management of 
the function of determining how the operation shall be per- 
formed. The knowledge of how to do the work in the 
past has been in the possession of the worker and has con- 
stituted one of the main items in his bargaining power. 
Possession of this information in systematized form by the 
management renders it less dependent upon experienced 
workmen for it is in a position to train its own men. 

2. The simplification of operations by greater subdivision 
of labor, rendering it possible to teach new and inexperi- 
enced men the operation in less time and with less loss, and 
hence lessening the dependence of the management upon 
skilled and experienced men. 

3. The development of semi-automatic machinery which 
lessens the skill required, reducing the dependence of the 
management upon skilled and experienced workmen. 



THE SUPERVISOR OF LABOR 437 

All of these practices are familiar to managers and have 
been followed extensively in the past but they have been 
used not primarily to combat unionism but to reduce labor 
cost. In the future their value as a means of breaking 
down the resisting power of labor and of increasing the 
difficulty of organization is likely to be more thoroughly 
recognized and they are likely to be consciously and syste- 
matically used for that purpose as well as a means of 
reducing labor cost. 

Expert labor administrators in addition to carrying out 
the traditional policy of employers toward unions are likely 
to supplement the traditional policy by a new policy based 
on a new conception of the union movement. Underlying 
the traditional attitude of employers toward unions has 
been the assumption that the labor movement, instead of 
being one of the fundamental social movements of the 
time, is simply a manifestation of superficial and temporary 
discontent, often not spontaneous but fomented by "profes- 
sional agitators." This sort of trouble employers not un- 
reasonably thought could be stamped out or held in check 
by the use of strong arm methods. 9 

°The failure of American business men to appreciate the deep- 
seated character of the modern labor movement and the necessity 
of dealing with it not as a passing flurry but as one of the funda- 
mental currents of the time, is well put by Mr. William Hard in 
an article in the New Republic. Mr. Hard says: 

"A man acquainted with foreign industrial and political affairs, 
who will spend three months in Washington meeting business men 
coming on war business to the national capital from all parts of 
the United States, would find it difficult not to conclude that 
American business men, all in all, are the most reactionary class 
of industrial rulers in the civilized world. To an astonishing num- 
ber of them the whole labor movement, which has given us trade 
union governments in the Antipodes and cabinets speckled with 
Socialists in virtually every free country in Europe, is not a move- 
ment at all. It is nothing but a 'trouble.' The very same thing 
that is shaking Russia, and therefore shaking and remaking the 



438 THE TURNOVER OF FACTORY LABOR 

It is inconceivable that intelligent study of the problems 
of handling labor should fail to convince expert labor ad- 
ministrators that the union movement is a deep-seated and 
spontaneous expression of the discontent of the masses. 
From the perception of this fact must follow the con- 
clusion that coercive methods alone are inadequate to check 
the movement. The discontent of labor is too deep-seated, 
the stakes for which it plays are too large for it to be turned 
aside from its objectives by the inconveniences which the 
coercive methods of employers impose. Coercive methods 
impede the movement only temporarily. In the long run 
probably they stimulate and strengthen it. Every clash 
quickens the class consciousness of labor, deepens its ani- 
mosity to capital and strengthens its determination to push 
its fight to successful conclusion. The temporary victory 
of the employer is achieved at the cost of increasing the 
strength of labor's forces. 

Not only do strong arm methods fail permanently to 
check the progress of the labor movement but, because of 
the animosity which they arouse toward employers, they 
cause the movement to become more radical and more 
aggressive in its demands. 

The inadequacy of coercive methods as a means of check- 
ing the union movement is likely to cause expert labor ad- 
ministrators to seek more effective methods. As the labor 
movement springs from the discontent of the workers and 
as this discontent is too deep-seated and too widespread to 
be held in check or to be stamped out by force, the method 

world, thrusts a finger in their factories, and they see nothing but 
a 'labor trouble' invented by irrelevant agitators, now presumably 
always German" (The New Republic, August n, 1917, p. 42). 

Certainly nothing shows more strikingly how out of touch with 
the labor situation the American manufacturer is than his oft 
repeated protest that labor "trouble" is simply the work of "pro- 



THE SUPERVISOR OF LABOR 439 

which labor administrators are likely to adopt is to seek 
to remove the causes of the worker's discontent. The 
means of attempting this is the pursuit of a liberal labor 
policy. The near future is likely to see both a very pro- 
nounced extension of the liberal policy to more employers 
and a continual increase in the degree of liberality shown 
to labor. The desire of employers to arrest the spread of 
unionism is the most potent reason for the belief that a 
liberal policy in greater or less degree will be the prevalent 
policy among employers. 10 

10 It will be insisted that an essential of industrial liberalism is 
recognition by employers of the right of employees to organize 
and the abandonment of coercive methods such as the discharge 
of the leaders of workers seeking to bring about organization. In 
principle this seems sound but consideration of the effects of 
unions upon the efficiency of the force puts this conclusion in doubt. 
Does a true liberal policy demand that the employer submit with- 
out resistance to the creation of an organization within his force 
which the experience of other plants tells him will more or less 
seriously impair the efficiency of his organization? May not 
employers reasonably insist that unions assume more responsibility 
for the promotion of industrial efficiency than they have up to the 
present before employers be expected to concede the free right of 
organization? The answer to the question is complicated by the 
fact that many of the restrictive regulations of unions are in part 
designed to frustrate efforts of employers to break up the unions 
by discrimination against union men. Unions feel that they can- 
not abandon these restrictive regulations until they are assured 
that employers will not discriminate against union men or union 
leaders. 

What effect the pursuit of a liberal labor policy will have upon 
the union movement cannot be safely predicted. It depends 
upon how liberal employers are, on how widespread is the prac- 
tice of a liberal policy, and upon its effect on the standard of living 
of the workers. Greater prosperity may rapidly breed new and 
costly wants among workers so that they are more dissatisfied 
than ever, or the growth of wants may be slow or the new wants 
may not require great outlay to gratify. All of this is impossible 
to predict. It is a safe assumption, however, that the pursuit of a 



440 THE TURNOVER OF FACTORY LABOR 

A most interesting question is what will be the effect of 
the administration of labor by experts upon the success of 
collective bargaining in the ever growing number of cases 
in which employers are compelled to recognize and deal 
with unions? 

Prediction is dangerous but it appears that where collec- 
tive bargaining prevails the expert labor administrator may 
be a less important influence than elsewhere. The reason is 
that when employers are compelled to deal with unions they 
are compelled to develop intimate knowledge of labor con- 
ditions and problems in their business, to become familiar 
with the workmen's point of view and with how to deal with 
workmen, so that they themselves become experts in matters 
of labor policy. The expert labor specialist, therefore, will 
not fill the gap in industries in which collective bargaining 
prevails wliich he does in other industries. 

Expert labor specialists do, however, possess opportuni- 
ties to make important contributions to methods of dealing 
with labor under collective bargaining. In spite of the 

liberal policy by employers will not stop the spread of unionism. 
It is probable also that a liberal policy will not even check the 
tendency for socialism to become the philosophy of the labor move- 
ment. It is probable, however, that a pronounced liberal policy 
which makes concessions in matters of substantial import to work- 
ers (such as hours and wages, rather than in superficial matters of 
no account), practiced on a wide scale, may retard, without pre- 
venting the growth of unionism. It may retard (without ending) 
the socialistic trend of the labor movement. Most important of 
all are likely to be the effects of a strong liberal policy upon the 
spirit and temper of the movement. There is good reason to 
hope that such a policy will promote a spirit of moderation and 
rationalism and that, if socialism becomes the philosophy of the 
movement, it will be an evolutionary socialism concerned with the 
practical problems of gradually introducing socialism rather than 
a revolutionary socialism primarily animated by the desire to pun- 
ish capitalism and with little interest in the practical problems of 
operating a socialistic state. 



THE SUPERVISOR OF LABOR 441 

great benefits which have come from collective bargaining, 
it has been far from completely successful. One of the 
most important unsettled problems raised by collective bar- 
gaining is its effect upon industrial efficiency. Unions with 
all their desirable points have generally arrayed themselves 
against many primary prerequisites of efficiency. They 
have insisted upon a flat time rate of payment instead of a 
piece work, bonus, or premium wage and upon promotion 
by seniority instead of by merit, they have opposed time 
and motion study, they have frequently insisted that skilled 
men perform operations which less skilled men can easily 
do, they have required the employment of unnecessary 
helpers, they have restricted output far below What men 
can easily do without overstrain, they have interfered with 
the maintenance of discipline by preventing the discharge 
of men who fairly merited discharge. 

The inequity of labor exercising an important voice in 
the direction of industry (to which, of course, it is entitled) 
without at the same time accepting responsibilities for the 
service rendered by industry to society, is obvious. Here 
as elsewhere the rule must apply that power and responsi- 
bility should be coordinate. Employers have thus far met 
with little success in their endeavors to prevent serious im- 
pairment of efficiency by strong unions. 11 As unions be- 
come more powerful and collective bargaining more preva- 

"One reason for employers' failure to prevent serious restriction 
of output by unions, of course, is that union regulations are not 
simply arbitrary rules but in a large measure were established to 
prevent abuses by employers — attempts to overdrive the men and 
attempts to disrupt the organization by discriminating in favor of 
non-union men and against union leaders. Employers have fostered 
the allegiance of workmen to the restrictive regulations by main- 
taining even after recognition of unions a more or less hostile 
attitude toward them, discriminating against the most active union 
men, favoring non-unionists, and generally creating the impression 
that they will destroy the union at the first opportunity. 



442 THE TURNOVER OF FACTORY LABOR 

lent, the problem of the impairment of efficiency by unions 
will become more pressing. The development of ways and 
means to prevent undue union impairment of efficiency 
while preserving collective bargaining is urgently needed. 
Perhaps the expert labor administrators can be more suc- 
cessful than have been the non-specialist executives in 
attacking this problem. 



INDEX 



Absenteeism, amount of, 266- 
267. 
reduction of, means of, 
266-268. 

Accidents, cost of part of cost 
of turnover, 137-140. 
new men, excessive fre- 
quency among, 137-140. 

Acquaintanceship, lack of, be- 
tween men and manage- 
ment, 199-202. 

Advancement, opportunity to 
obtain, importance of, 
189-190. 

Advertising, as a means of ob- 
taining labor, 298. 

Advertising "drives," regular- 
izing employment by, 
269, 271. 

Akerly, H. E., 265. 

Alcoholism, reduction of, 268. 

Alexander, M. W., 17, 28, 69, 
115-116, 121-122, 130- 
132. 

Allinson, Miss May, 127, 128, 
165, 182. 

Ambition, lack of, as cause of 
turnover, 216-217. 

Andrews, John B., 270, 271, 
272, 403. 



Applicants for employment, 
interviewing, 302-311. 
sizing up, 298-319. 
Application blanks, data on, 

303. 
Atherton, L., 77. 
Attitude of workers toward 

management, 194-196, 

213-214. 
Attitude of workers toward 

work, 213-214. 
Avoidable and unavoidable 

causes of turnover, 

14-15. 

Babcock, George B., 274, 355. 

Barba, W. P., 211. 

Barr, H. E., 256. 

Bernays, Miss Marie, 27, 28, 
41-42, 51, 70, 71. 

Bonuses, payment of, for at- 
tendance, regularity in, 
267. 
continuous service, 241- 

242, 245, 400-402. 
notice of intention of 
leaving, 324-325. 

Boston Elevated Railway, re- 
duction of turnover on, 
231-232. 



443 



444 



INDEX 



Boys and young men, instruc- 
tion of, 342-344- See 
under Children. 
Breaking in workers, break- 
ing in period, why crit- 
ical, 186-187, 326-327. 

importance of the break- 
ing in process, 326-327. 

instruction of new work- 
ers, 330-344. 

introduction of new work- 
ers into the organiza- 
tion, 327-33 . 

payment of new workers, 
344-346. 

See under Instruction of 
Workers and New 
Workers. 
Breaking in workers, cost 
of, accident frequency 
among new men, 137- 
140. 

ascertainment of, diffi- 
culties in, 110-113. 

ascertainment of, princi- 
ples governing, 1 10-130. 

borne in part by workers, 
116-121. 

data and estimates on, 
130-140. 

errors in estimating, 114- 
130. 

experience of workers af- 
fects, 125-130. 

factors in cost, 107-110. 

high cost not necessarily 
an unfavorable sign, 
133. 



Breaking in workers, cost of, 
motormen, 114, 133. 
overhead charges, errors 
in distributing, 120-125. 
principles governing as- 
certainment of, 1 10-130. 
variables affecting, 112- 

113. 

worker's share, 116-121. 

British Health of Munition 
Workers Committee, 
report on hours of work 
and efficiency, 259-260. 

Bull, R. A., 262-264. 

Bullard Machine Tool Compa- 
ny, bonuses for continu- 
ous service, 402. 
classification of jobs ac- 
cording to skill, 360- 
362. 

Capital and labor, influence of 
supervisor of labor 
on industrial relations, 
421-442. 
Causes of turnover, acquaint- 
anceship, lack of be- 
tween men and manage- 
ment, 199-202. 

ambition, lack of, 216-217. 

attitude of workers 
toward management, 
194-196, 213-214. 

attitude of workers 
toward their work, 213- 
214. 

classification of, 163-164. 

discharge, 213-214. 



INDEX 



445 



Causes of turnover, dissatis- 
faction, 194-196, 213- 
214. 

"drive" system of man- 
agement, 202-203. 

floaters, 214-217. 

grievances, failure to ad- 
just, 203-205. 

heat, 38, 74, 75-76. 

inaptitude for work, 206- 
213. 

instruction, lack of, 187. 

interest in work, lack of, 
187-188. 

lack of work, 11-13, 85- 
89. 

opportunity to better con- 
dition, 164-176, 217- 
219. 

physical unadaptability, 
207-213. 

relations between men and 
management unsatis- 
factory, 194-195. 197- 
199. 

repetitive work, 214, 216. 

work, nature of, 74-76, 
188-193, 214, 216. 

workers themselves as 
causes of the turnover, 
206-217. 

working conditions, 167- 
171, 185-196. 
Character analysis, systems of 

rating men, 366-372. 
Chicago Motor Bus Company, 
"credit" system of wage 
payment of, 353"354- 



Children, discharges, relative 

frequency among, 99. 
dissatisfaction prevalent 

among, 171. 
floating among, causes of, 

215-217. 
lay-offs, frequent among, 

88-89. 
size of turnover, causes 

of high, 215-217. 
size of turnover, high 

among, 76-84. 
unemployment among, 

152-155. 

Clements, F. O., 201. 

Cleveland Hardware Compa- 
ny, eight hour day in, 
262. 

Cleveland Street Railway 
Company, 129-130. 

Cloak, suit and skirt industry, 
size of turnover in, 19- 
20. 

Clothcraft Shops, absenteeism, 
reduction of, 267. 
bonuses for notice of in- 
tention of leaving, 324- 

325. 
legal aid to workers, 

406. 
reduction of turnover by, 

238-240. 
regularization of work by, 

239, 270, 274. 
transfer of workers by, 

274. 
Clothier, R. C, 418. 
Commons, J. R., 3. 



446 



INDEX 



Commonwealth Steel Compa- 
ny, eight hour day in, 
262-264. 
Confectionery industry, con- 
centration of turnover 
among new workers, 45. 
size of turnover in, 45. 
Continuous service, bonus for, 

241-242, 245, 400-402. 
Conway, T., Jr., 232-233. 
Cost of turnover to employ- 
ers, 107-141. 
factors of cost, 107-110. 
training given workmen 
limited by cost of turn- 
over, 1 09- 1 10. 
turnover as a symptom of 

other costs, 140-141. 
See under Breaking in 
Workers, cost of. 
Cost of turnover to workmen, 
142-159. 
data on lacking, 142-143. 
demoralizing influence of 

turnover, 157-158. 
difficulty of obtaining sat- 
isfactory jobs, 156-157. 
factors of cost to work- 
men, unemployment, 
142-144. 
need for data on, 142-143. 
Crompton-Knowles Loom 

Works, absenee rate in, 
266. 
Curtis Publishing Company, 
absenteeism in, 266. 
employment department, 
organization 0^417-418. 



Definition of turnover, 3-9. 
Demand for labor, seasonal 
variations in, affect 
turnover, 37-38. 
size of turnover, affected 
by, 33-35, 247. 
Demoralization, turnover as a 
demoralizing influence, 
157-158. 
Dennison Manufacturing Com- 
pany, absenteeism in, 
266. 
foreman, instruction of, 

382-383. 
job analysis, 286-287. 
reduction of turnover by, 

240-241. 
regularization of work by, 

241. 
transfer of workers by, 
274. 
Depressions, industrial, turn- 
over lower in times of, 

29-33. 

Discharge, foreman's author- 
ity should be limited, 
376-378. 
meaning of term, 12-13. 

Discharge rate, among chil- 
dren, 99. 
calculation of, on basis of 
size of force or on basis 
of number hired, 94-96, 

97- 
class of workers affects, 

96-100. 
depression affects, 100- 

103. 



INDEX 



447 



Discharge rate, men as com- 
pared with women, 97- 
99. 
new men, high among, 

91-92. 
prosperity affects, 100- 

103. 
size of, 90-100. 
Discharges, causes of, 213-214. 
causes of classified, 176. 
causes of, difficulty in as- 
certaining real causes, 
176-177. 
causes of, relative impor- 
tance of, 177-179, 184, 
insert opposite 185. 
industrial depression af- 
fects causes of, 178-179. 
numerical importance of, 
90-100. 
Discrimination against work- 
ers by foremen and 
gang bosses, prevention 
of, 390-391. 
Dissatisfaction, cause of turn- 
over, 164-176. 
cause of turnover among 
children, 171. 
Dissatisfaction with job, 

causes of, 185-196. 
Dissatisfaction with manage- 
ment, causes of, 197- 
205. 
"Dovetailing," regularization 
of employment by, 
271-273. 
"Drive" system of manage- 
ment, 202-203. 



Dumbleton, H. F., 337. 
Du Pont Powder Co., bonuses 
for continuous service, 
401. 
physical examination of 
employees, 211. 
Duration of employment, ac- 
cident frequency affect- 
ed by, 137-140. 
earnings affected by, 116- 

121, 135-136. 
statistics on, in certain 
plants, 44-46, 49, 249- 
250. 

Earnings, duration of employ- 
ment affects, 116-121, 
135-136. 

Eastman Kodak Company, 
emergency squadron, 
265. 

Eaton Crane and Pike Com- 
pany, physical examina- 
tion of employees, 212. 

Education of foreman, 380- 

385- 

Education of workers. See 
under Instruction of 
Workers. 

Efficiency, eight hour day, ef- 
fect on efficiency, 261- 
263. 
heat, effect on efficiency, 

253-255. 

records of individual effi- 
ciency, 362-372. 

records, value of, 362- 
363. 



448 



INDEX 



Eight hour day, efficiency, ef- 
fect on, 261-263. 

Emergency squadrons, 264- 
265. 

Emmet, Boris, 34, 45, 249. 

Employment bureaus, need for 
central public employ- 
ment bureaus, 155- 

156. 

Employment department, func- 
tions of, 281. 
need for, 282-284. 
See under Hiring. 
Europe, size of turnover in, 

27-28. 
Everett, George B., 340-341. 
Exchange of employees, reg- 
ularization of work by, 
275-276. 

Factory work, characteristics 

of, 188-193. 
tendencies of change in 

requirements made on 

worker, 300-301, 305- 

306. 
Fatigue, mitigation of, 254- 

257- 

Feiss, Richard A., 4, 14, 238- 
240, 267, 270, 274, 299, 
308-309, 310, 324-325, 
406. 

Filene Sons Company, griev- 
ance adjustment plan 
of, 398-400. 

Fisher, Boyd, 35, 122, 124. 

Fitness of applicants for em- 
ployment, 298-319. 



Fleming, R. D., 119, 130. 
Floaters, classification of, 214- 

215. 
hiring , of, how avoided, 

3i9- 
Floating, among children, 215- 
217. 

causes of, 214-217. 
Ford Motor Company, absen- 
teeism in, 266. 

jobs, classification of, ac- 
cording to skill, 360. 

legal aid to employees, 
407. 

reduction of turnover by, 
243-244. 

transfer system, 212. 
Foremen and gang bosses, 
authority to discharge, 
limitation of, 376- 
378. 

discrimination against 
workmen by, 390-391. 

future type of, 385. 

handling of men by, im- 
provement of, 372- 

386. 

hiring of men by, disad- 
vantages of, 282-284. «J 

instruction of, 380-385. 

instruction of workers by, 
inadequacy of, 332-334- 

selection of, 379-380. 

training of, 242, 380-385. 

turnover rate, influence 
on, 373- 
Foundries, size of turnovtr in, 
74-76. 



INDEX 



449 



Franklin Manufacturing Com- 
pany, wage payment 
system of, 355. 

Freeland, A. E., 402. 

Gang bosses, instruction of 
new workers by, 332- 

334, 338-339. 
See under Foreman and 

Gang Bosses. 
Gardner, H. L., 210. 
Gehris, Milton D., 211, 241, 

401. 
Germania Life Insurance 

Company, 254. 
Germany, turnover in, 27-28, 

41-42, 51, 70-72. 
Gilbreth, F. G., 266. 
Gilson, Miss Mary Barnet, 

239- 

Goldmark, Miss Josephine, 

261. 
Grievances, adjustment of, 

committees for, 389- 

390, 392-400. 
descriptions of plans for, 

392-400. 
Filene Sons Company, 

plan for, 398-400. 
foremen, arbitrary actions 

of, checked by, 378- 

\ 379- 

joint grievance commit- 
tees, 389-390. 
management, improved 

by, 378-379- 
need for, 203-205. 
organization for, 391-400. 



Grievances, adjustment of, 

remedy for turnover, 

227, 230, 231, 233-234, 

386-400. 
supervisor of labor, as 

adjuster of grievances, 

391-392. 
workers' representatives, 

role of, 389-390. 
Grieves, W. A., 18, 115-116, 

132. 

Handling men, "drive" system 

of management, 202-203. 

foremen and gang bosses, 

checks upon, 375~379- 
foremen and gang bosses, 
improvement of meth- 
ods of handling men, 
372-386. 
labor policy, need of a 

definite, 408-409. 
turnover, reduction of, 
by improvement in 
methods of handling 
men, 242. 
Hard, William, 305, 437-438. 
Heat, efficiency, effect upon, 

253-255. 
turnover rate affected by, 

38, 74, 75-76. 
Henderson, C. R., 270. 
Hiring, floaters, how to 
avoid, 319. 
foremen, disadvantages of 

hiring by, 282-284. 
interviewing, principles 
and practice, 302-311, 



45° 



INDEX 



Hiring, notice of help needed, 

importance of adequate 

notice, 320-325. 

references from previous 

employers, value of, 

3"-3i9. 
sizing up applicants, 298- 

3i9- 

sources of help, 290-298. 
Hirings, as basis for calculat- 
ing turnover rate, 10. 
Hours of labor, adjustment 
of, 258-263. 

efficiency, affected by re- 
duction of, 258-263. 

reduction of, effect on effi- 
ciency, 258-263. 

reduction of, reduces 
turnover, 226, 234, 239, 

243. 
Hoxie, R. F., 344. 
Huntington, Elsworth,253~254. 

Illinois Steel Company, regu- 
larization of employ- 
ment by, 270. 

Imperial Wall Paper Compa- 
ny, physical examina- 
tion of employees, 212. 

Industrial experience, length 
of, affects turnover 
rate, 81-83. 
unemployment affected 

by, 154-155. 
Industrial relations, supervis- 
or of labor, effect on 
relations between capi- 
tal and labor, 421-442. 



See under Relations be- 
tween Men and Man- 
agement, 442. 
Instruction of workers, atti- 
tude of workers toward 
work affected by, 187. 

boys and young men, im- 
portance of, 342-344. 

importance of, 330-332. 

improved methods of, 

334-344. 

lack of, cause of turn- 
over, 187. 

learning period, why crit- 
ical, 186-187, 326-327. 

limited by turnover, 109- 
110. 

need for, 187. 

present methods, inade- 
quacy of, 33 2 -334. 

training departments, 339- 
342. 
Interest in work, extent of, on 
part of workers, 195. 

importance of, 187-188. 

lack of, cause of turnover, 
187-188. 

need for, 187. 

piece rate cutting system, 
effect on, 192. 

prerequisites of, 187-196. 

relations of men with 
management affects, 
194-196. 

repetitive nature of work 
affects, 187-189. 

standardization of work 
affects, 190-191. 



INDEX 



45i 



Interviewing, importance of, 
302. 
principles and practice 
of, 302-311. 

Investment in plant and equip- 
ment, excess caused by 
the turnover, errors in 
calculating, 122-125. 

Job analyses, description of, 
285-289. 
value of, 289. 
Jobs, classification of, in ac- 
cordance with skill, 

358-362- 
difficulty of unemployed 
workers in obtaining 
satisfactory jobs, 156- 

157. 

Keck, 26, J2. 

Keir, J. S., 266-267. 

Labor policy, need for a def- 
inite, 408-409. 
Labor, sources of, 290-298. 
Lamson, H. G., 211. 
Lay-off, meaning of, confused, 

12-13. 
Lay-offs, boys as compared 
with girls, 89-90. 
children, frequent among, 

88-89. 
depression affects number 

of, 100-102. 
numerical importance of, 
85-89. 



Lay-offs, part of turnover or 
not, 13-14. 
prosperity affects num- 
ber of, 100-102. 
reasons for large num- 
ber among children, 88- 

89. 

seasonal industries, nu- 
merical importance in, 

85-89. 
should they be included 

in turnover? 3-6, 13- 

14. 
Lawson, George, 138-139. 
Learning period, why critical, 

186-187, 326-327. 
Legal aid to employees, 406- 

407. 
loan sharks, protection of 

workers from, 406. 
Leiserson, W. M., 213. 
Lemon, Chas. H., 133. 
Levenstein, 195. 
Locality, size of turnover af- 
fected by, 29-33, 35-36, 

247. 

McCabe, J. J., 212. 

Management. See under 
"Drive" System of Man- 
agement and Handling 
Men. 

Medical aid to workers, 231, 
234, 239, 245, 403-406. 

Mental tests, need for, 300- 
302. 

Merit systems of wage pay- 
ment, 347-353- 



452 



INDEX 



Midvale Steel Company, phys- 
ical examination of em- 
ployees, 211. 

Mobile Light and Railway 
Company, relative acci- 
dent cost attributable to 
new and old men, 139. 

Motormen, cost of breaking 
in, 114, 133. 

Miinsterberg, Hugo, 301-302. 

National Association of Cor- 
poration Schools, phys- 
ical adaptability of 
workers, report on, 209. 

National Cloak and Suit Com- 
pany, training depart- 
ment of, 340-341- 

New communities, turnover 
high in, 35-36. 

New workers, accidents 
among, excessive fre- 
quency of, 137-140. 
breaking in, importance 
of the breaking in proc- 
ess, 326-327. 
dissatisfied easily, 186- 

187. 

instruction of, 330-344. 
introducing into the or- 
ganization, 327-330. 
payment of, 344-346. 
size of turnover among, 

44-57, ii4. 
New York State Railways, 
relative accident fre- 
quency among new and 
old men, 138. 



Notice of workmen's intention 
to quit, extent to which 
given, 321-323. 
how obtained, 323-325. 

Ohio Industrial Commission, 
physical adaptability of 
workers, investigation 
by, 208, 211. 

Old age, unemployment af- 
fected by, 155. 

Opportunity to advance with- 
in the plant, importance 
of, 189-190. 

Opportunity to better condi- 
tion, cause of turnover, 
164-176, 217-219. 

Out-of-door work, size of 
turnover affected by, 
37-38 

Overhead charges, error in 
treatment of, in esti- 
mating cost of turn- 
over, 120-125. 

Overtime, reduction of, 262- 
268. 

Packard Motor Car Company, 
instruction of foremen 

by, 383-385. 
instruction of workmen 
by, 337. 
Paper box industry, concen- 
tration of turnover 
among new employees, 

45- 
size of turnover in, 45. 



INDEX 



453 



Permanency of employment. 
See Duration of Em- 
ployment. 

Philadelphia Rapid Transit 
Company, reduction of 
turnover by, 232-234. 

Physical defects, cause of 
turnover, 207-213. 
prevalency of, 208-213. 
rejections for, 208-212. 
transfer of defective em- 
ployees, 212. 

Pickering, Miss Ruth, 261-262.* 

Piece rate cutting, effect on 
interest of workmen in 
work, 192. 

Planning and routing work, 
effect on treatment of 
men by foremen, 385- 
386. 

Plumb, Fayette R. Inc., 134. 

Poole, Ernest, 305. 

Price, C. W., 200-201, 305. 

Pride in work, causes of lack 
of, 190-193- 
interest of workmen in 
work affected by lack 
of, 190. 

Profit sharing, reduction of 
turnover by, 248-249. 

Promotion in accordance with' 
merit, advantages of, 
290-292, 356-357. 
classification of jobs for 
purpose of promotion, 
358-362. 
prerequisites of success, 
356-362. 



Promotion in accordance with 
merit, reduction of 
turnover by, 244, 245, 
355, 356. 
should promotions be in- 
cluded in turnover, 8. 

Prosperity, turnover greater 
in times of, 29-33. 

Psychological tests, need for, 
300-302. 

Public Service Railway of 
New Jersey, accident 
cost among new and old 
men, 137. 

Railway employees, size of 
turnover among, 23-25. 

Rating systems, systems of 
rating workers, 362-372. 

Reasons for leaving previous 
job, significance of, 307- 
308. 

Recommendations of em- 
ployees, as a means of 
obtaining help, 293- 
297. 

Records of individual effi- 
ciency and character, 
362-372. 

Reduction of turnover, pre- 
requisites of, 251-280. 

Reduction of turnover, meth- 
ods of, breaking in 
new workers, 330-346. 
central employment bu- 
reaus, 155-156. 
centralized management 
of labor, 408-413. 



454 



INDEX 



Reduction of turnover, meth- 
ods of, checks upon 
foremen, 375-379- 

classification of methods 
of reducing turnover, 
222-224. 

Clothcraft Shops, 238-240. 

Dennison Manufacturing 
Company, 240-241. 

exchange of employees, 
275-276. 

fatigue, mitigation of, 

254-257- 

floaters, how to avoid hir- 
ing, 319. 

Ford Motor Company, 
243-244. 

foremen, checks upon 
methods in handling 
men, 375-379- 

foremen, methods of 
handling men, improve- 
ment of, 372-386. 

foremen, training of, 242. 

grievances, adjustment of, 
227, 230, 231, 233-234, 
386-400. 

handling of men, im- 
provement of, 242, 372- 
386. 

hiring, more careful se- 
lection of men, 239, 241, 
242, 245. 

hours of labor, adjust- 
ment of, 226, 239, 259- 
268. 

instruction of new work- 
ers, 239, 241, 332-344. 



Reduction of turnover, meth- 
ods of, investigation of 
reasons for resigna- 
tions, 375-76. 

legal aid to employees, 
406-407. 

management of labor, cen- 
tralization of, in hands 
of experts, 408-413. 

merit system of wage pay- 
ment, 347-349- 

overtime, reduction of, 
262-268. 

payment of new workers, 
344-346. 

profit sharing, 248-249. 

promotion in accordance 
with merit, 241, 245, 

355-356. 
regularization of employ- 
ment, 226, 228, 230, 236- 
238, 239, 241, 245, 269- 

275. 

relations between men and 
management, improve- 
ment of, 227-28, 230. 

reports on size of turn- 
over, 378. 

resignations, investigation 
of reasons for, 375-376. 

sick benefits, 239, 245, 

403-405. 

speed of work, adjust- 
ment of, 255. 

Stetson, John B., Com- 
pany, 241-242. 

supervisor of labor, 408- 
413. 



INDEX 



455 



Reduction of turnover, meth- 
ods of, survey of meth- 
ods used in specific in- 
stances, 223-250. 

wage payment based on 
merit, 347-349- 

wages, adjustment of, 226, 
232-233, 236, 239, 276- 
280. 

work, mitigation of dis- 
agreeable features of, 

253-257- 
working conditions, im- 
provement of, 226, 253- 

257- 
Reduction of turnover, statis- 
tics on, 226, 228, 229, 
230, 232, 233, 235, 239, 

240, 242, 244, 246, 247, 
249. 

statistics on, criticism of, 
225. 
References from previous em- 
ployers, accuracy of, 

315-317. 
Regularizing employment, 226, 
228, 230, 236-238, 239, 

241, 245, 264-265, 269- 
275. 

Rehirings, numerical impor- 
tance of, 125-130. 

Reilly, P. J., 132-133, 240-241, 
286. 

Reilly, P. T., 139. 

Relations between men and 
management, acquaint- 
anceship, lack of, 199- 
202. 



Relations between men and 
management, attitude 
of workers toward man- 
agement, 194-196, 213- 
214. 

character of, 199-205. 

"drive" system of man- 
agement, 202-203. 

grievances, adjustment of, 
203-205, 386-400. 

interest of workers in 
their jobs affected by, 
187-189. 

Safety First campaign, 
effect on, 200-201. 

size of turnover affected 

by, 194-195, 197-199. 
Remington Arms and Ammu- 
nition Company, eight 
hour day in, 262. 
Repetitive work, cause of 
turnover, 214, 216. 

interest of workers in 
their jobs affected by, 
187-189. 

prevalency of, 188-189. 
Reports on size and causes 

of turnover, 11, 378. 
Resignations, better opportu- 
nity elsewhere as a 
cause of, 167-176. 

causes of, 164-176. 

causes of, difficulty in as- 
certaining, 165-166. 

causes of, statistics on, 
172-175, 180-183. 

depressions affect causes 
of, 174-176. 



456 



INDEX 



Resignations, investigations of 
reasons for, as a means 
of reducing turnover, 
375-376. 

numerical importance of, 
85-89. 

prosperity affects, 100- 
102. 

reasons for, should be as- 
certained by employ- 
ment department, 375- 
376. 

skill of workers affects 
reasons for resigning, 
172-175. 

statistics on causes of res- 
ignations, 172-175, 180- 

183. 

working conditions affect 
causes of, 167-171. 

Rest periods, 227, 257. 

Richey, A. S., 129, 139. 

Rike, Frederick H., 210. 

Rike-Kumler Company, phys- 
ical examination of em- 
ployees, 210. 

Ross, E. A., 431. 



Safety First campaign, rela- 
tions between men and 
management, effect on, 
200-201. 

Satisfactory jobs, difficulty in 
obtaining, 156-157. 

Schools, source of labor sup- 
ply, 298. 

Schumann, 71. 



Scranton Railway Company, 
relative accident cost 
attributable to new and 
old men, 139. 

Seasonal and short-time fluc- 
tuations in size of turn- 
over, 37-42. 

Seasonal and short-time fluc- 
tuations in business, 
counteracting the effect 
of, on the working 
force, 236-238, 239, 241, 
245, 264-265, 269-270. 

Selection of new employees, 
298-319. 

Semi-skilled men, size of turn- 
over among, 57-74. 

Shaw, C. E., 382-383. 

Sherwood, W. J., 139. 

Sick relief of workers, 231, 
234, 245, 403-406. 

Sickness rate in certain estab- 
lishments and indus- 
tries, 404-406. 
ventilation affects sickness 
rate, 254-255. 

Size of turnover, in general, 
16-28. 
boys, young men, girls, 

76-84. 
bookbinding trade, size in, 

20. 
calculation of, 9-1 1. 
children, size among, j6- 

84. 

class of work affects, 43- 84. 

cloak, suit and skirt in- 
dustry, size in, 19-20. 



INDEX 



457 



Size of turnover, demand for 
labor affects, 29-35, 2 47- 

depressions affect, 29-33. 

discharges, numerical im- 
portance of, 90-100. 

duration of employment 
affects, 47-54- 

earnings of workers af- 
fect, 226, 232-233, 236, 
239, 276-280. 

Europe, size of turnover 
in, 27-28. 

factors affecting, 29-84. 

foundries, size in, 74-76. 

heat affects, 38, 74, 75-76. 

industrial depression af- 
fects, 29-33. 

industrial experience of 
workmen affects, 81-83. 

lay-offs, numerical impor- 
tance of, 85-89. 

locality affects, 33-37, 247. 

localized among certain 
classes of workers, 43- 

44- 

metal working establish- 
ments, size in, 20-22. 

miscellaneous industries, 
size in, 20-22, 25-26. 

new communities, high in, 
35-36. 

new workers, high 
among, 44-57. 

opportunity to obtain 
other employment af- 
fects, 33-35, 247. 

prosperity, effect on, 29- 
33- 



Size of turnover, railway em- 
ployees, size among, 

23-25. 
resignations, numerical 

importance of, 85-89. 
seasonal variations in de- 
mand for labor affect, 

37-42. 
seasonal variations in size 

of turnover, causes of, 

37-38. 
semi-skilled workers, size 

among, 57-74. 
skill of workmen affects, 

57-74- 

skilled workmen, low 
among, 57-74. 

steel mill, size in, 18. 

stores, size in, 22. 

typical rate about 100 per- 
cent, 16-17. 

typical rate difficult to as- 
certain, 16-17. 

unskilled workmen, size 
among, 57-74. 

variables affecting, 16. 

wages of workmen affect, 
226, 232-233, 236, 239, 
276-280. 

women as compared with 
men, 84. 

woolen mills, size in, 18. 

work, nature of, affects, 
74-76. 

yard laborers, size among, 

76. 

Sizing up applicants for em- 
ployment, 298-319. 



458 



INDEX 



Skilled workmen, turnover 
rate among low, 57-74. 

Sources of labor supply, 290- 
298. 

Speed of work, adjustment of, 

255. 
Sperry Gyroscope Company, 
eight hour day in, 261. 
Standardization of work, ef- 
fect on interest of work- 
men in work, 190-191. 
Stearns, R. B., 133. 
Steel mill, size of turnover in, 

18. 
Stetson, John B., Company, 
bonuses for continuous 
service, 241-242, 401. 
physical examination of 

employees, 211. 
reduction of turnover by, 
241-242. 
Stores, size of turnover in, 22. 
Supervisor of labor, capital 
and labor, influence on 
relations of, 421-442. 
development of position 

of, traced, 413-421. 
duties of, in specific 

plants, 417-419. 
duties to be expected of, 
in the future, 419-421. 
foremen instructed by, 

385- 

grievances handled by, 
391-392. 

handling of men, respon- 
sible for, 409-413, 419- 
421. 



Supervisor of labor, indus- 
trial relations, influence 
of supervisor of labor 
on, 421-442. 

labor policy determined 
by, 408-409. 

liberal labor policy, influ- 
ence on pursuit of, 431- 

441. 
need for, 408-413. 



Tarbell, Miss Ida, 255. 

Taylor, Frederick W., 255, 
256, 301. 

Tawney, R. H., 277-280, 337- 
338. 

Temporary help, whether in- 
cluded in turnover, 4-5. 

Temporary jobs, reduction of 
number of, 276. 

Temporary lay-offs, whether 
included in turnover, 

13-14. 
Terminations due to reduction 
of force, whether in- 
cluded in the turnover, 

3-6. 

Thompson, S. E., 301-302. 

Time and motion study, piece 
rate cutting rendered 
less profitable by, 425. 

Tolman, William H., 350. 

Training departments, in- 
struction of workers 
by, 339-342. 
National Cloak and Suit 
Company, 340-341. 



INDEX 



459 



See under Instruction of 
Workers. 
Transfers, causes of classified, 
6-8. 

of defective employees, 
212. 

reasons for, 6-8. 

regularization of employ- 
ment by, 273-274. 

whether included in the 
turnover, 6-8. 
Turnover, classification of, 

11-15- 
concentrated among cer- 
tain classes of workers, 

43-84- 
defined, 3-9. 
expression of, 9-1 1. 



Unemployment, caused by 
turnover, 144-156. 
children, high among, 

152-155. 

cost of turnover to work- 
men, 144-156. 

inability to find work, 
144-156. 

industrial experience af- 
fects liability to, 154- 

155. 
old age increases liability 

to and length of, 155. 
Universal Machine Company, 

eight hour day in, 

201. 
Unskilled work, does it exist, 

333- 



Unskilled workmen, turnover 
high among, 57-74. 

United States Pension Bu- 
reau, effect of improved 
ventilation on sickness 
rate, 254-255. 



Van Kleeck, Miss Mary, 20, 

165, 182. 
Ventilation, effect on health, 

254-255. 
Vitaphone Company, eight 

hour day in, 262. 
Vocational guidance bureaus, 

influence on working 

conditions, 298. 
source of labor supply, 

298. 
Von Binkowski, "J2. 



Wage payment, automatic in- 
creases of wages, 353- 

354- 

"credit" systems of pay- 
ment, 353-354. 

Franklin Manufacturing 
Co., method of rate cal- 
culation, 355. 

merit systems of wage 
payment, 347-353- 
Wages, discouraging effect of 
low wages, 278-280. 

economy of high wages, 
276-280. 

efficiency, wages affect, 
276-280. 



460 



INDEX 



Wages, factors which deter- 
mine rate most advan- 
tageous to employer, 
276-278. 
rise as duration of em- 
ployment increases, 116- 
121, 135-136. 
turnover rate affected by, 
226, 232-233, 236, 239, 
276-280. 

Weaver, H. B., 353-354- 

Weller, J. H., 383-384. 

Wernicke, O. EL, 201. 

Williams, John M., 134. 

Willits, J. H., 271. 

Women, discharge rate among, 
as compared with 
among men, 97-99. 



Women, stability of, as com- 
pared with men, 84. 
Woolen industry, size of turn- 
over, 18. 
Work, turnover rate affected 

by, 74-76, 253-257. 
Working conditions, cause of 
turnover, 185-196. 
effect on resignations, 

1 67- 1 71. 
improvement of, reduces 
turnover, 226, 253-257. 
Workmen-instructors, instruc- 
tion of new workers by, 
335-337- 
Yard laborers, size of turn- 
over among, 76. 



(l) 



